Finance

Crisis Hits Tesla as 46,000 Cybertrucks Recalled and Protests Gather Momentum

2025-03-20

Author: Ling

In a shocking turn of events, Tesla and its enigmatic CEO, Elon Musk, are facing what some are calling a "brand tornado crisis moment." This dire situation calls for Musk to reconsider his entangled commitments with former President Donald Trump, according to a prominent supporter of the electric vehicle giant.

The drama unfolded as Tesla announced a massive recall of 46,000 Cybertrucks in the United States to address a potentially dangerous flaw: an exterior panel that may detach while driving. This safety concern, however, is just the tip of the iceberg.

On the heels of this recall, protests have been organized, with demonstrators targeting Tesla showrooms worldwide. The group, Tesla Takedown, has declared March 29 as their biggest day of action yet, planning 500 protests across the globe. The intensifying backlash has already resulted in vandalism at Tesla locations, heightening concerns among investors and stakeholders.

Dan Ives, a notable managing director at Wedbush, one of Tesla's staunchest advocates, emphasized that Musk’s high-profile role with Trump and the “department of government efficiency” he leads is impacting Tesla's brand image. Ives insists that the damage, which once seemed limited, has rapidly escalated into a global crisis. "Tesla is Musk, and Musk is Tesla," he stated, implying that the two are inseparable in the eyes of consumers and investors alike.

With Tesla’s stock value plunging by a third within the past month, Ives believes that immediate action is crucial. He advised Musk to officially balance his roles with Doge and Tesla to prevent any further reputational harm. "This is not just about Tesla’s future; it’s about Musk’s legacy as well," he cautioned.

Furthermore, investors are eager for clarity regarding Tesla's future, particularly concerning the rollout of new, more affordable vehicles and updates on fully autonomous driving capabilities set for launch in Austin, Texas, later this year. The pressure is mounting, and shareholders are demanding answers directly from Musk.

In a recent interview, Musk dismissed the backlash, labeling the protesters as "deranged" and suggesting that their anger stems from his efforts to combat governmental inefficiencies. "They essentially want to harm Tesla because we’re disrupting their established practices in the government," Musk told Fox News, revealing a deeply polarized landscape.

Compounding the dilemma, the National Highway Traffic Safety Administration has warned that the detached panel presents a significant road hazard that could lead to accidents. To address this issue, Tesla has promised to replace the faulty cant rail assembly at no cost to the customers affected.

As the recall and protests intertwine, the stakes have never been higher for Tesla. With investor confidence wobbling and public perception shifting, how Musk navigates this inflection point could determine not only the company's immediate future but also its long-term viability in the rapidly evolving automotive industry. Stay tuned, as the days ahead may hold pivotal opportunities or irrevocable challenges for both Tesla and its flamboyant leader.