Elon Musk's authoritarian leadership at Tesla continues to backfire, with safety failures and plummeting sales signaling deeper trouble. The company's controversial door handle design has led to at least 15 deaths and prompted regulatory crackdowns in China and potential U.S. bans.

Tesla's core electric vehicle market is collapsing. BYD surpassed Tesla in global BEV sales in 2025, while European competitors like VW and Renault gained ground with cheaper, more practical EVs. Tesla’s failure to deliver on the 4680 battery and Model 2 has crippled its growth strategy.

Musk’s Full Self-Driving (FSD) software remains unsafe and unpopular despite price cuts. FSD's disengagement rate is dangerously high, and subscription uptake after free trials remains near zero. Experts say Tesla’s robotaxi dreams are dead, and its FSD monetization strategy has failed.

Industry analysts now question whether Tesla can recover under Musk’s leadership. With EV competition surging and Tesla’s innovation lagging, the company risks becoming irrelevant in the next phase of automotive evolution.