As Musk sticks his fingers in government, Tesla suffers serious reputational damage.
Early on Monday morning, a bank of Tesla Superchargers went up in flames in Littleton, Massachusetts. While the cause of the fire is unknown, Tesla’s Superchargers are not known for bursting into flames, and a $5,000 reward is being offered by the authorities, who believe the fire was “intentionally set.” Assuming that arson is to blame, this may well be one more attack against a brand that’s becoming more and more toxic.
Elon Musk’s involvement with US President Donald Trump has changed the nature of the spotlight on the Tesla CEO. Instead of cute cameos in Marvel movies and being name-checked by Star Trek, Musk now makes headlines for boosting far-right politics in Europe and suggesting cuts to Social Security. This has made him some new friends, but it has lost many more in the process. And the consequences for Tesla’s core business—selling electric cars—have been disastrous.
2024 was already a not-good year for the automaker. A decade ago, it was basically the only game in town if you wanted an electric car that could go more than 200 miles between charges, and celebrities and tastemakers flocked to the brand in droves. Now, customers are spoiled for choice, and Tesla’s model range—effectively just two cars—has to compete against all the established OEMs that are increasingly working out how to build great EVs, plus all those Chinese startups that appear to have cracked that market in terms of what customers want and how to make it cheap.