As Tesla (TSLA) CEO Elon Musk’s heavy involvement with the Trump administration has unfolded since Trump won the election in 2023, an interesting thing has been happening: people are losing faith in his most popular brand.
It can’t all be blamed on Musk’s DOGE project, though. Tesla has been battling a variety of problems for several years now, and dropping interest in the once-popular EV brand can be attributed to the deadly combination of all of them.
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Repeated reports that Tesla has the highest accident rate of any auto brand have had an impact on the EV maker’s reputation, and many hopefuls that were waiting on Musk’s promised $25,000 Tesla model were deeply disappointed when Musk announced in April the project would be canceled.
Related: Tesla quietly delays highly anticipated model teased last year
Enter Tesla’s earnings call on April 22, and those feeling doubts would not find assurance. The company’s net income plummeted 71% quarter over quarter, leading Musk to publicly promise he would step away from his DOGE duties and refocus on his ailing EV company.
But even in the worst circumstances, the billionaire continues to make the big promises he’s known for, and now he has a new one for his faithful to contemplate.
Elon Musk’s big idea for robotaxis
Musk on April 24 reshared a tweet on X from user DogeDesigner that read, “Tesla owners will have the ability to turn their cars into robotaxis. Technically, your car will earn money for you. It’s like Uber, but the car drives itself.”
Musk added a note when he reshared the post, saying, “Your Tesla car will earn you money.”
Musk’s fans flooded into the comments, chattering about the possibilities of using their Teslas as a form of passive income.
“What’s preventing Tesla from running their own robotaxi fleet that will compete with the owner-operated robotaxis?” a reply from user solostakers read.
Related: Investors may be losing faith in both Elon Musk and Tesla stock
Big idea, or another empty promise?
Considering the current state of Tesla’s sales and the dwindling public opinion of Musk since he began working with the Trump administration, it’s no surprise that the billionaire is doing that for which he’s known best: coming up with big ideas.
Yet in order for the idea to become reality, Tesla’s Full Self Driving first needs to work flawlessly. The service has drawn both concern and criticism in recent years, leading to a 2024 NHTSA investigation of 2.4 million Tesla vehicles after reports of hundreds of crashes and dozens of deaths. In other words, it has a long way to go, no matter what Musk promises.
Musk is most likely trying to keep his fans thinking about exciting possibilities while he figures out how to save his company. In the meantime, experts in the field remain concerned about the once-bright future of the EV maker.
“Tesla is in critical condition from what I have witnessed,” David Materazzi, CEO of Galileo FX, told TheStreet in an interview. “Nearly a quarter of its sales. When Europe turns on your brand, a lot of the world follows. Lose Europe, lose your edge. Musk built it and now he’s sinking it.”
However, some experts also see the possibility of a recovery for Tesla, as Wedbush analyst Dan Ives said in a note earlier this week before Musk announced his intent to step away from his work with DOGE.
“If Musk leaves the White House there will be permanent brand damage…but Tesla will have its most important asset and strategic thinker back as full-time CEO to drive the vision, and the long-term story will not be altered,” Ives said. “IF Musk chooses to stay with the Trump White House, it could change the future of Tesla [and] brand damage will grow.”
Related: Jeff Bezos is quietly backing a potential Tesla killer
