Elon Musk's Cybertruck Faces Setbacks Amidst Declining Sales

Elon Musk, currently the wealthiest individual globally, is experiencing significant challenges with his electric vehicle company, Tesla. Recently, his net worth has plummeted from $400 billion to $320 billion, reflecting a decline in both financial standing and public perception.

On Thursday, Tesla announced a recall of 46,000 Cybertrucks due to a manufacturing defect involving the adhesive used for stainless steel body panels. This issue poses serious safety risks on the road, sparking public concern.

The recall has also shed light on Tesla's sales figures, revealing that only 46,000 Cybertrucks have been sold since their launch in November 2023. In comparison, Ford's F-150 pickup trucks have outsold the Cybertruck within just three weeks.

Sales performance for other Tesla models has also faltered. This month, the percentage of Teslas traded in has surged to 1.4%, a significant increase from 0.4% just one year ago. On average, 1.3 million vehicles are returned in the United States each month.

Moreover, only 1.8% of car buyers are considering purchasing a Tesla, a stark drop from 3.3% in November. Jessica Caldwell, an automotive market analyst, noted that customer loyalty toward the Tesla brand is increasingly uncertain due to Musk's political involvement, concerns over vehicle depreciation, and a growing sense of disconnect.

Previous Tesla owner Fred McKinney expressed a sentiment that is becoming common among former Tesla drivers, contemplating a sticker that reads 'I hate Musk' for his vehicle but ultimately deciding that selling the car would be a more satisfying option.

Globally, Tesla's sales have also seen a downturn, and the vehicles have become frequent targets for vandalism in the United States, with reports of Teslas and charging stations being set ablaze in multiple locations.

In response to this increase in vandalism, Trump's former Attorney General Pam Bondi announced charges against three individuals accused of setting fire to Teslas, threatening them with prison sentences ranging from 5 to 20 years. Her message was clear: refrain from damaging Tesla vehicles.

Conversely, Trump's former Commerce Secretary Howard Lutnick recently advised viewers on Fox News to consider investing in Tesla, emphasizing the current low stock prices. He claimed that the shares, which have dropped from a peak of $480 in December to $236, are an unprecedented bargain.

Despite Lutnick's endorsement, Tesla's stock price remained stagnant following the announcement. Trump has previously supported Musk, even appearing with him and a luxury Tesla outside the White House, suggesting his interest in purchasing one. Such a public display of endorsement is unprecedented in the history of U.S. presidencies.

As Musk navigates these turbulent waters, the crucial question remains: can Trump persuade his base, known for their preference for gasoline-powered vehicles, to consider switching to Cybertrucks?