Tesla Faces Third Month of Western Crackdown: Musk Digs In His Heels

This past weekend may have been Tesla's most "isolated" 48 hours.

On Saturday, March 28, local time, over 200 Tesla stores worldwide were crowded with protesters. They held up various signs opposing Tesla and Musk, venting the recent dissatisfaction of some Americans with this electric vehicle giant.

From London to Los Angeles to New York, protesters spanned different regions across the globe, but their message was completely aligned: "Opposing all of Musk's recent words and actions that do not align with the identity of a 'businessman.'"

On January 20 this year, Musk was officially appointed by the Trump administration to establish the "Department of Government Efficiency." This was seen by the outside world as a landmark event marking Musk's transition from a pure businessman, while Tesla was no longer regarded as a purely commercial enterprise.

However, as of the time of writing, Musk himself seems unfazed by this global protest—even appearing "unshakable" and "resolutely defiant"—despite Tesla's stock price plummeting from nearly $480 last November to $221 by mid-March, a drop of more than half.

Even with such a decline, Musk remains the world's richest person, but we believe this isn't the main reason for his composure. Tonight, let's break it down simply and clearly.

Besieged on All Sides

Tesla's 2025 started off on the wrong foot.

According to aggregated data from Cleantechnica, The Verge, Reuters, AutoNews, and other media outlets, Tesla's sales in the European market have seen year-on-year declines for both January and February.

For example, in Germany—Europe's largest single-country market—Tesla's February sales suffered a staggering 76% year-on-year drop, with its market share plunging from 2.8% in February 2024 to just 0.7%.

Additionally, in other key European markets like France, Sweden, Norway, and Denmark, Tesla's February sales also fell by 40% to 50% compared to the same period last year. Looking at the broader European market, Tesla's January sales were down 45% year-on-year.

On the other side of the world, Tesla has experienced year-on-year sales declines for the past five months up to February this year.

In the first two months of 2025, Tesla's cumulative deliveries of the Model 3 and Model Y barely exceeded 60,000 units, whereas in January 2024 alone, deliveries of these two models surpassed 70,000.

Tesla's rocky global start to 2025 is tied to a highly publicized global controversy at the end of 2024.

On November 6, 2024, Trump won the election and, in his victory speech, called Musk "a remarkable person." Musk, in turn, flooded his social media platform X with rocket emojis that day.

The two seemed to have resolved their past conflicts, as if Musk's comment a decade ago—"Trump's election is embarrassing"—had never been uttered. Trump established a new department for Musk to lead and even publicly expressed interest in buying a Model S, further strengthening their relationship.

The global protests against Tesla began amid heightened scrutiny of this relationship.

On December 9, 2024, the UK's Financial Times first exposed the existence of a group of longtime Tesla owners opposed to Musk—a group that was growing. These owners suspected Tesla was no longer a pure automotive company and that Musk had abandoned the neutral stance expected of a businessman, leading some once-loyal Tesla fans to withdraw their support.

"Buying a Tesla now feels like wearing the wrong hat," said one interviewee, a 2012 Model S owner and 2022 Model Y owner.

Anti-Musk sentiment quickly spread worldwide.

On February 21, when Musk officially became head of the U.S. "Department of Government Efficiency," some of his actions during the inauguration ceremony further amplified European opposition.

Musk is perhaps one of the most meme-loving CEOs on the planet, but this time, his penchant for internet humor seems to have backfired.

The level of global public outrage Musk has stirred this time appears unprecedented, exceeding conventional expectations for the image of an international corporate leader.

Doubling Down

Over the past few months, Musk has admitted to poor sleep quality.

The reason, of course, is his simultaneous juggling of multiple roles and the global protests against him.

Last Thursday, Fox News released a special interview lasting over half an hour, in which Musk spent much time explaining his insomnia.

Seven years ago, during a CBS interview, he lost sleep over Tesla's inability to ramp up production, forcing him to sleep at the factory. This time, it's due to the overwhelming public opposition in the U.S. keeping him awake.

The protests in the U.S. are escalating. Last weekend, a 70-year-old man participating in an anti-Tesla protest was accused of driving into a 49-year-old counter-protester and has since been arrested.

Additionally, since March, Tesla vehicles across the U.S. have been vandalized—some even set on fire or shot at.

- On March 11, two of Tesla's new Cybertrucks in Massachusetts were maliciously spray-painted with graffiti, and all four tires were slashed.

- On March 10, six cars at a Tesla dealership in Washington State were vandalized, with one Cybertruck tagged with a specific symbol.

- On March 9, four Tesla vehicles in Seattle were suspected to have been intentionally set ablaze.

As the line between Musk's identity as a businessman and his government role blurs, so does the public's perception of Tesla. This is the most critical challenge Tesla—once a pioneer in sustainable energy—faces in 2025.

As for Musk's own perspective? He claims to "think more deeply than anyone else"—still fixated on topics like birth rates and Mars exploration.

When discussing the vandalism of Tesla vehicles, Musk remains as combative as ever.

"It's time to arrest those funding attacks (on Tesla vehicles). Just arresting the hired vandals won’t stop this violence," he publicly responded on X.

In his Fox News interview, he expressed a similar view, arguing that the public is being influenced: "Organizing campaigns that call for harming individuals is inherently illegal. Those funding such activities should be prosecuted."

Yet, on the other hand, he seems acutely aware of the root cause—"I know holding a government position is detrimental to me. My role in government has negatively impacted Tesla."

Although Musk hasn’t issued a formal, detailed response to the global criticism Tesla has faced over the past three months, this year, Tesla held an unconventional event: the "Tesla All-Hands" company-wide meeting.

At the meeting, Musk repeatedly emphasized Tesla's goals, mission, and responsibilities, stating that "that American car company with the hammer logo" (referring to Tesla) remains a pioneer in sustainable energy and AI, and that this will never change.

On the other hand, he spent considerable time rallying employees, stressing, "You should hold onto your Tesla stock with conviction," "We are the most innovative company in the auto industry," and "We aim to achieve prosperity without harming the environment—this is what we’re working toward."

Outside Tesla's Austin headquarters, Musk’s political persona is growing stronger. But back at the Gigafactory, he seems to have not forgotten his original entrepreneurial vision.

His closing remarks at the all-hands meeting perfectly capture his current state of life:

"We’re like an alien-themed web series striving for the highest ratings in history. Of course, not every episode will be thrilling—just as a show can’t only feature highlights. Our job is to keep this series running, continually pushing for higher ratings, and never letting it get canceled."

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