Tesla in Free Fall: Musk’s Empire Is Crumbling

As much as Elon Musk is "suffering," many would say, "I wish I could suffer like him." It's true that he has lost a significant amount of money, but most people would think, "I’d love to have his fortune, even if it’s shrinking." Since December, the numbers have not been in his favor.

Let’s take Tesla, his flagship company, as a reference. The market value of its shares has plummeted by 50%, a significant blow. Sales in Europe, especially in Germany—a key market where Musk invested heavily—have collapsed by 76%. Ironically, one of the factors contributing to this decline is his alleged association with the far-right party Alternative for Germany (AfD).

In China, another strategic market for Tesla, things aren’t looking good either: sales have dropped by 49%. Tesla’s crisis is undeniable, and Musk, in an attempt to recover ground, is exploring new emerging markets. His focus is now on India, South Africa, and Saudi Arabia.

However, the outlook in Saudi Arabia is complicated. The sheikhs and oil magnates who once bet on Tesla have pulled their money and invested in companies like Lucid Motors, which has grown significantly. Musk is desperate to break into India, seeing the country as a key market, much like the U.S. and China were in the past. But there’s a problem: Asian consumers seek modern technology, innovation, and affordability. Tesla no longer represents any of those three things. It’s not affordable, it’s not innovative, and it’s not technologically superior.

Moreover, Musk has damaged his brand’s image with his constant controversies: Nazi salutes, justifications of Hitler, mass layoffs, and an increasingly incendiary rhetoric. All of this has impacted not only his personal reputation but also Tesla’s perception in the market.

Now, entering India will be an almost impossible mission. Indians are highly nationalistic, and while Musk supports nationalism when it benefits him, he hates facing it when it works against him. Tata Motors, India’s largest automotive company, dominates the market with affordable and innovative cars. Controlling over 60% of the country’s electric vehicle market, it will be tough for Tesla to compete there.

Musk knows this, which is why he has started flirting with the Indian government. Recently, he has held meetings with Prime Minister Narendra Modi, seeking to offer special visas to Indian investors and position them in high-ranking business roles in the U.S. His strategy is clear: get close to India’s elites to gain influence in the country.

But there’s an even bigger problem: Asia no longer sees Tesla as a symbol of innovation. The largest electric car market in Asia isn’t China—it’s Thailand, and Tesla is practically nonexistent there. Companies like BYD have taken the lead with advancements that make Tesla look outdated: amphibious cars, vehicles with suspension systems designed to avoid potholes, anti-collision technology, and ultra-fast chargers that can power a car in under five minutes.

Musk has neglected Tesla by focusing too much on politics. He failed to advance his plan for more affordable cars and lost the momentum needed to compete with BYD, Lucid Motors, and Tata Motors. His factory in Santa Catarina, Nuevo León (Mexico) did not progress as expected, and now Tesla is no longer his main asset.

The future of Tesla looks bleak. In a world where innovation is key, Tesla has ceased to be the reference point. Asia, the most ambitious and technologically driven automotive market, has turned its attention to other brands. Musk has lost ground, and the blow could be irreparable.