Tesla wrapped 2025 on a sour note, delivering just 225 cars globally—a 95% plunge from prior years. This freefall underscores vulnerabilities in the EV leader’s armor, sparking debates on its post-dominance era.
Root causes abound. Soaring raw material costs hiked prices, pricing out middle-class buyers. Competitors countered with incentives Tesla couldn’t match. Meanwhile, brand fatigue set in; flashy launches no longer mesmerize.
Musk’s Twitter escapades drew fire, boycotts ensued. Safety regulators worldwide launched probes into Autopilot failures, halting sales in pockets.
Operationally, supply chain snarls persisted post-pandemic. Battery shortages crippled output, while labor unrest hit factories hard.
Strategic shifts offer counterbalance. Tesla doubled down on software subscriptions and Full Self-Driving upgrades, juicing margins. Expansion into India and Southeast Asia eyes new horizons.
Analysts diverge: bears predict bankruptcy; bulls bank on Musk magic. Quarterly earnings will reveal more, but one truth stands—complacency killed giants before. Tesla must adapt swiftly or cede the future it once defined.