Tesla sales are falling sharply, Chinese competitors are advancing, and Elon Musk is dividing the waters. But according to Forbes, the bottom has not been reached yet.
Tesla is in a very critical situation. Sales are falling everywhere and the share price is plummeting. According to the renowned business publication Forbes, the company is facing its biggest crisis to date – and this is just the beginning.
In early 2025, sales in California fell by 31 percent. In Europe, they plummeted by a whopping 43 percent, and in China – Tesla’s most important market – sales fell by 29 percent in the first two months of the year. The share price has also fallen by 34 percent.
Forbes now writes that the decline in sales and share value is serious, but that the real problems have not yet come to the surface.
Competitors are not just catching up with Tesla – several are in the process of overtaking.
Chinese manufacturers are overtaking on price and technology
Chinese giant BYD in particular has now become a real threat. The company has overtaken Tesla in revenue and is on track to sell more electric cars globally this year.
BYD's models are also cheaper. Their Seagull costs around $10,000, while a Tesla Model Y starts at $34,500, the business media writes.
Technologically, the current status is not in Tesla's favor either. BYD has just launched a battery system that can charge a car four times faster than Tesla's Supercharger.
At the same time, BYD offers advanced self-driving features as standard – and is collaborating with Chinese AI developers to improve the technology.
Forbes: Elon Musk is a growing burden for Tesla
According to Forbes, it's not just the technological competition that threatens Tesla. Elon Musk's role also plays a negative role. He is involved in five other companies and only spends a small part of his time on Tesla.
This has led to growing criticism – and protests in front of stores in the US and Europe.
In California, once Tesla's strongest market, competitors such as Hyundai and General Motors have gained market share. According to research firm S&P Global, Tesla's sales in the state fell 31 percent in January. Other brands grew by up to 24 percent.
Tesla is missing new models – and the existing ones are failing
The Cybertruck, which Musk has touted as the brand's flagship model, has had a troubled launch. Sales have fallen short of expectations and the car has already been recalled eight times. Quality issues have further dented confidence.
Forbes also points out that Tesla is focusing on robotics and artificial intelligence as future sources of revenue.
But according to several experts, the company's humanoid robot, Optimus, is lagging behind competitors such as Boston Dynamics and Honda.
The forecast: The downturn for Tesla is not over
According to AutoPacific, a significant decline in Tesla sales is expected in the first quarter of 2025. Several equity analysts have already lowered their expectations for the full year.
JP Morgan calls the decline in Tesla's brand value unprecedented in the history of the automotive industry.
Forbes concludes that Tesla is in a downward spiral. Sales are falling, technology is lagging behind, and the brand is suffering from Elon Musk’s controversial profile. The analysis is pretty clear: “It’s bad now – but it’s going to get worse.”
If you want to put on the positive hat, it's cheap to invest in Tesla shares right now – but to go that route with your savings, it naturally requires that you believe in a future upturn after the current downturn.
