Elon Musk admits Tesla’s imminent collapse and seeks urgent exit: “I’ve run out of options”

Elon Musk is actively seeking solutions to revitalize electric vehicle sales amid growing competition. Tesla reported a 9% drop in sales and a staggering 71% collapse in net income, raising concerns about its long-term viability.

Tesla’s brand image has been tarnished by Elon Musk’s political controversies, which are affecting how the company is perceived in key markets. The backlash against anything associated with Musk is becoming increasingly apparent.

Within the industry, Tesla’s market share has dropped to 43%, as it faces intense competition from both Chinese and American automakers. Adding to the pressure, U.S. tariffs threaten the competitiveness of Tesla’s battery production, making local manufacturing more crucial than ever.

And this challenge is at the heart of the issue. “Trade tensions exacerbated by tariffs imposed during the Trump administration are complicating matters,” analysts noted. As a result, it’s becoming difficult to make clear sales forecasts for the remainder of the year amid such uncertainty.

At the moment, there are no new Tesla models planned. Musk’s return to daily operations months later was seen as a major development, but the company is clearly under pressure. There are multiple issues to resolve, and it’s unclear how to address them effectively.

The first and foremost issue is public perception: surveys show that 60% of consumers hold an unfavorable opinion of Musk, which directly affects how people view the EV brand. This is particularly troubling in key markets like California and Europe, where Tesla was once highly popular—but is now facing organized backlash.

In such a tense climate, rumors abound. Early this morning in Europe—late night in the U.S.—Tesla denied reports that it was searching for a new CEO, a story originally published by The Wall Street Journal that gained more traction than expected. The company officially refuted the claim.

Meanwhile, competitors are seizing the moment. Chinese manufacturers like BYD, American giants like General Motors, and Korean automakers such as Hyundai are launching new, innovative models. Tesla’s market share dropped to 43% in Q1, compared to 75% just three years ago. The coming months are expected to be critical—not just for Tesla, but for the entire EV market.

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