Tesla Faces Mounting Challenges as Sales Decline and Cybertruck Recall Expands

The electric vehicle giant contends with global sales drops, a major recall, labor disputes in Germany, and backlash over Elon Musk's political ties.

Tesla's global sales have plummeted, with U.S. trade-ins reaching record levels and new registrations in Germany dropping 76.3% year-over-year in February 2025.
The company has recalled over 46,000 Cybertruck vehicles in the U.S. due to a defect in the steel exterior trim that poses safety risks.
Elon Musk's association with Donald Trump and controversial public actions have triggered protests, attacks on Tesla dealerships, and declining brand loyalty.
Tesla's Grünheide factory in Germany is facing labor disputes, with workers demanding improved conditions and respect from management.
While the Model Y remains the best-selling electric vehicle globally, critics argue Tesla's reliance on it underscores a lack of innovation and product diversification.