In what promises to be one of the most turbulent quarters in the history of Tesla, the electric vehicle giant recorded a shocking of 71% of the profits, reporting a profound shaking under the patinated technological facade of the company. Loss – an impressive drop of 981 million dollars on an annual basis – is not only a hard financial blow, but also a symbolic moment that suggests that Elon Musk’s global prestige could begin to cloud.

While Tesla stumbles, longtime markets are losing confidence. Customers in China are turning their backs, European buyers are moving away and even Wall Street is preparing for the impact. For the first time for years, the question is no longer only if Tesla will be able to keep promises, but if Elon Musk himself is not becoming a weight for society.

The dramatic report on profits was published on April 22, when Tesla announced that net profit for the first quarter of 2025 had collapsed only 409 million dollars, decreasing compared to 1.39 billion dollars of the same period of the previous year. Even the turnover suffered a serious blow, descending from $ 21.3 billion to $ 19.3 billion, while the gross margins fell from 17.4% to 16.3%.

The figures were well below the expectations of Wall Street and, although a brief rise of 5% in the after-hours courses suggested some relief from investors for the renewed attention of Musk on Tesla, this did not do much to compensate a collapse of the shares that lasted a year, greater than 40%.

The company of the company, Elon Musk, tried to minimize the crisis with its typical swagger. In a call with analysts, he said that the “important work” for the establishment of the Department for Government’s efficiency (Doge) – a controversial federal agency he contributed to directing – was now behind him.

He undertook to return to work full time in Tesla, dedicating “much more time in Tesla” starting from May and dedicating only “one day or two per week to government issues”.

But the market reaction was clear: the world is no longer willing to believe the word of Musk.

Tesla’s problems in China are particularly worrying. Once the most important international growth market for the company, China has quickly become a hostile territory. At the beginning of this month, Tesla was forced to block orders by the customers of continental China for two of its flagship models, the Model S and the Model X, due to what the company has called “market conditions”.

However, the insiders underline deeper problems: greater competition, the negative reaction of consumers to Musk’s political positions and the decrease in trust in Tesla’s statements on autonomous driving.

The Chinese giant of electric vehicles byd has launched a formidable challenge, launching a new generation battery that recharges in a few minutes. Together with national pride and state support, byd’s ascent has put to the test the Tesla’s activities in Shanghai. The base of Chinese consumers, once faithful, is migrating to national alternatives that offer not only technological innovation, but also political neutrality.

The fact that Tesla still produces the Model 3 and the Model Y in Shanghai offers a certain security margin, but with the growing nationalist feeling and foreign CEO subjected to increasingly severe control, it is difficult to ignore the foreseeable future.

In the meantime, Tesla’s position in Europe, once a reliable growth engine, is sliding. Musk’s controversial activity on social media and its sensational support for far -right figures in the region have alienated large consumers bands. What once made it a rock star of technology is now perceived as irregular, divisive and, in some cases, offensive.

European car manufacturers are also recovering ground. Historical brands such as Volkswagen, BMW and Mercedes-Benz have accelerated their electric vehicles programs, introducing elegant models equipped with advanced technology, refined interiors and competitive prices. Tesla, now no longer the only one in circulation, is forced to defend its territory in a market that rewards both performance and politics.

And while the European regulatory authorities intensify controls on autonomous driving technology, including the completely autonomous driving system on which Punta Tesla, the continent seems to lose interest in Musk’s futuristic promises.

At national level, Tesla is no longer the darling of the media of the past. The same week in which Tesla has announced its deficit of almost a billion dollars, Musk doubled his bold statements on the company’s autonomous driving ambitions. He reiterated Tesla’s plan to launch a paid robotaxi service in Austin by June, stating that “millions of Tesla will work in autonomous mode in the second half of the year”. He even hypothesized that consumers will be able to “fall asleep in our cars and wake up at their destination” by the end of the year.

The problem? Federal authorities do not believe it. The National Highway Traffic Safety Administration (NHTSA) currently has several open investigations on Tesla’s autopilot and full self-deriving features, following a series of accidents related to the behavior of the software in conditions of poor visibility.

Critics have long accused Tesla of deceiving in deception, underlining that the completely autonomous guide is only partially autonomous and still requires human supervision. Analysts in the automotive sector, like Sam Abuelsamid of Telemetry Insight, have publicly doubted Musk’s optimism: “The system is not robust enough to work without supervision,” he warned. “Suddenly he will make mistakes that will lead to an accident.”