Tesla is on Fire. What's Next?
Tesla—the electric car giant—is on fire.
For the first time, that’s not a good thing.
The stock has taken a nosedive—down since December, and protests are popping up at dealerships across the U.S. and Europe. Boycotts are gaining steam. Some owners are even slapping “I bought this before Elon went nuts” stickers on their cars. And now, there are literal fires at Tesla dealerships and Tesla cars being torched.
What’s behind this blaze?
Elon Musk—Tesla’s larger-than-life leader—and his recent moves. He’s tied himself to President Trump, pumping over $270 million into the campaign and taking the helm of the Department of Government Efficiency—or DOGE—to slash federal spending. It’s a bold play. But it’s sparked a backlash he might not have seen coming.
Here’s the thing.
As a leader, your actions don’t just stay in your lane—they ripple out. They shape your brand, your culture, and your business. Elon’s no stranger to criticism—he’s been a lightning rod for years. He probably knew his government gig would ruffle feathers. But this? Protests, vandalism, a $500 billion drop in value since Inauguration Day? That’s next-level. He might’ve underestimated how much people tie him to Tesla—and how fast they’d turn if they felt he wasn’t looking out for their interests.
That’s the leadership lesson here.
People can lift you up—or tear you down—based on what you stand for.
Tesla built a loyal tribe—folks who saw it as a beacon of innovation, sustainability, and a better future. But now? For some, it’s a symbol of Musk’s politics—his rightward shift, his Trump alliance, his DOGE crusade. Customers are walking away—not because the cars stopped working, but because they feel the leader’s lost sight of them. Social media’s buzzing with it. Posts on X show owners frustrated, analysts warning Musk’s focus on government is tanking investor confidence. One analyst put it plainly, urging Elon to get back to Tesla’s factories. It’s a stark reminder. Your people—your team, your customers—watch every move. If they think you’re off course, they’ll let you know. Loudly.
Does this mean Elon should’ve dodged the backlash—changed course to keep the masses happy? That’s the million-dollar question—and the jury’s still out. Leadership’s a tightrope. Sometimes, you bend to listen—adjust to what your people need. Other times, you dig in and go against the grain because you believe it’s right for the long haul. Elon’s clearly betting on the latter. He’s doubled down—calling the protests “extreme domestic terrorism” on X—pushing his vision even as Tesla burns. Maybe he’s banking on weathering the storm—hoping loyal fans and new buyers will stick it out. Or maybe he didn’t see the full cost coming. Either way, it’s a gamble—and a lesson for us all.
Let’s flip it.
What if Elon had anticipated this? Could he have softened the blow? Leaders who know their actions spark reactions can brace for it—get ahead of the narrative. He might’ve leaned harder into Tesla’s mission—electric cars, clean energy—reminding folks why they loved the brand in the first place. Instead, the spotlight’s on his politics—not the product. That’s the trap. When your behavior overshadows your purpose, people stop seeing the good you’re building. They just see you, and what they don’t like. It’s not about pleasing everyone—that’s impossible. It’s about knowing the stakes and deciding what you’re willing to risk.
So, what’s next—for Tesla, for Elon, for any leader watching this unfold?
Tesla’s not dead—far from it. It’s still got killer tech, a global footprint, and a fanbase that’ll fight for it. But the cracks are showing, and even though sales have slumped in Germany and France this January, Musk’s got a choice. Refocus on Tesla, steer it back to its roots, or keep riding the DOGE wave and hope the brand holds.
For us, it’s a wake-up call. Your behavior as a leader isn’t just your business—it’s the business. People can make you—or break you. Especially if they feel you’ve lost sight of them.
Does that mean you shift every time the wind blows?
Not quite. Sometimes, you stand firm—trust your gut—and push what you know is right, even if it’s unpopular now. Other times, you listen, adapt, and bring people along. The trick is knowing which fight’s worth picking and how much heat you can take.
What’s the takeaway?
Know your ripples. Understand what your actions signal.
Because when the fire starts, it’s your call how to put it out—or if you let it burn.
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-Ivan
Founder / CEO - The Better Place