Tesla was the hottest stock in the market following Donald Trump's inauguration on January 20. 2 months later, the company faces its biggest challenge in years. CEO's Elon Musk stint as a White House advisor has irked lawmakers and investors alike, with 'Tesla Takedown' calls gaining global traction.

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In the latest, the company issued a major recall, affecting over 46,000 Cybertrucks in the United States due to faulty exterior panels that could detach while driving. This recall covers the majority of Cybertrucks currently on the road, raising fresh concerns about quality control at the EV giant.

Tesla stock in reverse

This recall would be the biggest challenge for any other carmaker, but for Tesla, it's just the tip of the iceberg. The company's stock has plummeted over 40 per cent in 2025, owing to declining demand, ageing vehicle lineup, growing competition, and political backlash. Tesla also leads US vehicle recalls, with its cars accounting for 5.1 million call-backs in 2024 alone. The company's market share dropped to 50 per cent in 2024 from 75 per cent in 2022.

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Beyond quality concerns, Tesla is facing mounting political and public backlash. Protests against Elon Musk's policies are escalating, with activists organising the largest coordinated demonstration against Tesla to date. Over 500 protests are planned at Tesla showrooms worldwide on March 29. Protestors oppose Musk's role in government policy changes, including Federal spending cuts and mass layoffs. Meanwhile, Musk and President Donald Trump have labelled these attacks as 'domestic terrorism.'

Analysts warn that growing consumer boycotts could further impact Tesla's brand image and sales, adding to the company's ongoing challenges.