Tesla Trouble: Why Elon’s EV Empire Is Facing a Perfect Storm of Crises!

Tesla is no stranger to controversy or disruption, but the last few months have tested even the most loyal investors’ patience. From tumbling sales figures in Europe to regulatory scrutiny over its robotaxi ambitions, Tesla is navigating a turbulent phase. The electric vehicle (EV) pioneer, long regarded as a trailblazer in innovation, is now dealing with intensified competition from Chinese automakers, public backlash linked to Elon Musk’s political involvement, and growing concerns over the safety and readiness of its autonomous vehicles. Tesla’s European car sales plunged nearly 28% in May 2025 — the fifth consecutive month of decline — as cheaper Chinese EVs gained ground despite EU tariffs. Simultaneously, Tesla’s robotaxi rollout in Austin has prompted an investigation from the U.S. auto safety regulator, NHTSA, after videos emerged of erratic lane behavior and speeding. These challenges coincide with an evolving macro environment and internal transitions
that could reshape the company’s near-term performance and reputation.