Tesla’s Tumble And Musk On The Mat; For India, Is It Still Worth The Gamble Or Should India Move On?
The future of Tesla is still hanging in the balance as investors and analysts continue to sound the alarm on Elon Musk’s leadership.
Since the start of 2025, the electric vehicle producer has battled a number of factors, pushing shares down 36% year-to-date. Given how well it had performed during the final months of 2024, the contrast is difficult to ignore and many experts are expressing concern. They have reason to scale back their expectations, as Tesla recently reported extremely disappointing delivery numbers, demonstrating just how much consumer sentiment toward the brand is suffering.
Many of Tesla’s problems have been attributed to Musk, specifically to his decision to focus more on his responsibilities on Capitol Hill than on his company. One analyst believes that he must take action immediately before time runs out.
A longtime Tesla bull believes Musk needs to act fast
For months, Wall Street sentiment toward Tesla has suffered as analysts have soured on Musk and scaled back their price targets. But through it all, one expert maintained that the CEO could prevail and help lead Tesla back to its previous levels.
Daniel Ives of Wedbush Securities garnered a reputation as one of the industry’s most notorious TSLA stock bulls. Even as shares declined throughout 2025, he refused to lower his $550 price target until recently, citing concerns about Musk and stating the need for him to refocus on Tesla.
On April 20, Ives published another note to investors, issuing an ominous warning regarding Tesla’s future. In it, he stated that Musk will end up facing a “code red” situation unless he makes a major decision that he may not want to.
As noted, Ives has continuously argued that Musk’s work with the so-called Department of Government Efficiency (DOGE) has compromised TSLA stock, and it is therefore in the company’s best interest for him to abandon this position.
In this note, Ives and his team present themselves as being at a “major crossroads” regarding Tesla. While they list several reasons for this, the bulk of their argument centers around the severe damage Musk’s political affiliations have done to the company’s brand.
The argument that European sentiment toward Tesla is significantly impacting the company is not unique to Ives. David Materazzi, founder and CEO of Galileo FX, spoke to TheStreet about that exact topic.
“People aren’t just selling their cars here… they’re making a statement. That’s a brand in free fall,” he stated, referring to Europe. Materazzi added that he believed other nations would follow the example set by countries such as Germany and Italy, in which consumers have taken a stand against Musk.
Tesla’s Not Just Bleeding, It’s Hemorrhaging, and Musk’s Distraction Is Making It Worse
Hence, the walls are closing in on Tesla, and unless Elon Musk snaps out of his political fever dream, things are about to go from bad to catastrophic.
While Daniel Ives is throwing out “code red” warnings, his criticism now feels tame compared to what other heavyweights on Wall Street are saying. Ross Gerber, a prominent Tesla shareholder, isn’t mincing words anymore, he wants Musk out as CEO, full stop. His take is that the damage Musk has done to Tesla’s brand is so deep, nothing short of a leadership overhaul can fix it.
In his latest note, Ives practically screams the obvious: Elon’s playing a dangerous game of chicken with Tesla’s entire future on the line. The note spells it out:
“If Musk leaves the White House, the brand might limp, but Tesla gets its brain back. If he stays, brace for more brand decay and an existential crisis.”
And here is what happened – investors actually rewarded Musk for promising to spend less time in Washington. When he hinted during Tesla’s earnings call that he might start focusing more on, you know, actually running Tesla, the stock jumped 5.5% in after-hours trading. That’s how desperate the market is for him to just do his job.
But the situation is still messy. While Tesla posted stronger-than-expected profitability in Q1 thanks to cost cuts, the gloss fades fast:
–Auto revenue crashed 20%.
—Net profit nosedived 71%.
—-Wall Street targets, Missed. Hard.
—–And the future is cloudier than ever. Tesla’s already admitted it may slash its growth forecast in three months.
Why?
“Changing political sentiment” and raging trade wars are scrambling supply chains and denting demand.
The latest tariff spat with China is a ticking time bomb. U.S. import taxes on China just shot up to 145%, and Beijing fired back. Tesla hit pause on some Model S and X orders in China, its second-biggest market. Not a great look when you’re trying to sell the future.
Musk, ever defiant, says macroeconomic conditions are to blame: “It’s hard to buy a car when the world feels like it’s falling apart.”
Fair, Elon. But here’s the problem, Tesla’s world is falling apart because someone (Musk) is not holding the steering wheel.
But, while he finally admitted he’d be cutting back time from his political side hustle, damage control may already be too late. His “Department of Government Efficiency” which is a PR nightmare dressed as policy, has triggered vandalism at Tesla showrooms, nationwide protests, and an investor exodus.
Robotaxis, Reboots, and Red Flags – Musk’s Tesla Focus Is Back, But Is It Too Little, Too Late?
Even though it seems that Elon Musk might finally be returning to the business of building Teslas instead of torching government programs on X, but is it time to pop the champagne, well, not just yet!
Lately, he’s been sprinkling just enough Tesla talk into his timeline to keep the faithful hopeful, teasing robotaxis and cheaper cars, even as his calendar still looks – split between SpaceX launches, Neuralink’s brain probes, xAI fantasies, and yes, that Doge-y sideshow of dismantling federal departments.
And the investors are not impressed. As Shawn Campbell of Camelthorn Investments put it bluntly – “More Elon at Tesla? Sure, that’s good. But real upside? Try this headline – ‘Musk to quit DOGE, goes all-in on Tesla.’”
Until then, it’s half-measures and hopium.
Still, Tesla’s trying to keep the lights on. The company says its long-hyped affordable EV is on track for a 2025 launch, built on current lines (read – cost-cutting mode). Vice President of Engineering Lars Moravy confirmed they’re on schedule, sort of.
“Ramp might be slower than we hoped.” which loosely translates to – don’t hold your breath.
Meanwhile, reports suggest the “cheap car” might just be a stripped-down Model Y assembled in the U.S., now delayed a few more months. So much for a clean-sheet revolution.
Then there’s the robotaxi fairytale, still allegedly launching in Austin this June. Musk claims that by the second half of 2025, there will be millions of fully autonomous Teslas roaming the streets despite problems with regulators, lawsuits, and basic safety standards. Perhaps, just background noise to the man who lives for the headline.
But here’s the cold truth –
–Tesla’s automotive gross margin continues its descent, now at 12.5%, down from 13.6%.
—Q1 revenue was $19.34 billion, well below expectations of $21.11 billion.
—-Deliveries fell 13%, a brutal signal that the brand shine is fading, and fast.
And even with gimmicks like free charging and Full Self-Driving trials, analysts are already expecting another year of declining deliveries in 2025.
So, while Musk finally peeks back into the Tesla cockpit, the ship is still swerving.
Therefore, What About India?
Exactly a year after ghosting Narendra Modi, Musk flaked again with his April 2024 visit to India. which was part sightseeing, part $3 billion gigafactory scouting trip, canceled last-minute citing “Very heavy Tesla obligations,” while jetting off to Beijing to sign FSD deals with Premier Li Qiang and Baidu.
Considering, India bent over backwards for Starlink, handing out deals via Airtel and Reliance Jio, even after both giants previously lobbied hard against foreign satellite players. Now they’ve done a U-turn, and Musk is still playing hard to get.
Hence, instead of fawning over Tesla’s every whisper, India would do well to diversify its bets.
And this is where BYD, the Shenzhen-based EV juggernaut, comes in. It is not only China’s darling, it was Warren Buffett’s early pick too. Back when Musk was unveiling the Roadster, Buffett poured $230 million into a then-obscure battery company working on an economical five-door hatchback.
He’s since made 2,000% returns, and guess what? Even now, amid tariff chaos, Vanguard and BlackRock are still holding strong.
Moral of the story, India does not need Musk to go electric. Sometimes, the smarter money rides silent and BYD might be the quiet killer India needs to back next.
Time to Trade Strategy, Not Slogans
If Trump can turn currency, commerce, and even co-operation into weapons, why should India keep clutching pearls of misplaced nationalism?
Should New Delhi and Beijing think more like calculating capitalists and less like squabbling neighbours, since, the world’s not in a mood for moral grandstanding – it is about strategic math now.
Here’s a simple fix to that gaping $100 billion trade deficit with China – recycle Chinese capital into India. Let Byd build its EVs here, but on our terms. Make it conditional.
And that flash charging tech could not have come at a better time. Think about it – charging your EV as quickly as you fill up your tank. That alone could drive India’s EV adoption faster than any subsidy ever could. No oversized batteries, no mining mess, and no stranded motorists tweeting for help at midnight.
Let’s look at numbers – Byd has clocked over $100 billion in revenue in FY24, leapfrogging Tesla.
In India, only Reliance and LIC beat that and just eight companies in the Nifty 50 even reach half that.
And Tesla is stumbling – the cheap EV that never arrives, the overpriced Cybertruck that became a meme, and the aging model lineup – it is clear the Tesla star is fading, even if Musk’s social media is still burning bright.
Meanwhile, Byd is eating into Tesla’s numbers, it’s dishing out software in entry-level models to democratise autonomous driving; and that is exactly what Indian roads, and wallets, need.
Just two weeks ago, a wave of WhatsApp forwards and fake news about Byd’s India entry forced Commerce Minister Piyush Goyal to publicly temper the excitement. But here’s the real question – are we truly safeguarding strategic interests by playing gatekeeper for a volatile ally that’s busy alienating half the world? Or do we start hedging with smarter bets – maybe even better bets?
The Last Bit
India stands at a critical crossroads – seduced by the allure of Tesla and Elon Musk’s celebrity, yet repeatedly sidelined when real stakes emerge. Musk’s erratic engagements, from ditching India for Beijing to the delayed promise of affordable EVs and robotaxis, reveal a pattern we can no longer ignore.
Meanwhile, Byd is quietly but decisively ticking all the right boxes: affordability, innovation, flash charging, and a proven commitment to mass adoption. As global alliances shift and the US doubles down on protectionism, India must rethink its EV strategy – not through the lens of loyalty, but opportunity.
Strategic engagement with China on commercial fronts like Byd, just as we’ve done with Russian oil, is not capitulation but smart diplomacy. If Riyadh can cut deals with Byd while Washington fumes, so can New Delhi. Betting on better bets isn’t betrayal. It’s survival. And more than that – it’s vision!
