Tesla’s sales are in trouble. The once-dominant EV giant saw double-digit declines in deliveries in early 2024, a sharp contrast to its rapid growth in previous years. While the global electric vehicle market is expanding, Tesla’s grip is loosening—and the reasons go beyond just competition.
A major factor is Elon Musk himself. While Tesla’s CEO has always been controversial, his recent actions, political views, and erratic behaviour seem to be turning off potential buyers. Once a visionary leader admired for pushing EVs into the mainstream, Musk’s social media antics and divisive statements are making consumers think twice before purchasing a Tesla.
At the same time, the EV market is evolving. Legacy automakers like Ford, GM, and Hyundai are launching competitive electric models, offering more choices to consumers. Tesla no longer has the monopoly on long-range EVs with cutting-edge tech. Plus, high interest rates and reduced government incentives are making all EVs, including Tesla, a tougher sell.
Another issue? Quality control and service complaints. Tesla owners have long voiced concerns about panel gaps, software glitches, and poor customer service. While early adopters tolerated these problems, today’s buyers expect better reliability and after-sales support—and competitors are stepping up.
Tesla’s brand loyalty is also being tested. Some longtime fans are moving to rivals offering better interior quality, improved driving assistance tech, and more affordable price points. Meanwhile, the company’s recent price cuts may have helped short-term sales but hurt its premium image.
Can Tesla bounce back? Possibly—but it will need more than price cuts and new models. Rebuilding trust, improving quality, and reducing reliance on Musk’s unpredictable persona might be the key to reclaiming its position as the undisputed EV leader.
