COMMENT - Elon Musk sets wrong priorities: Instead of reconciling Tesla customers, he is pushing robotaxis with dubious technology

The former glory of electric car pioneer Tesla has faded. 2025 is shaping up poorly for Elon Musk 's flagship company, even catastrophically in Europe. Business was already sluggish last year. Tesla's global sales fell by 13 percent in both the first and second quarters, and the profit slump was even greater. But instead of solving the existing problems, Musk now wants to push ahead with robotaxis , i.e., self-driving cars. Can this work?

Tesla is struggling in all three major markets. The situation is by far worst in Europe, where the Tesla pride of its often left-liberal, progressive customers is no longer openly displayed. The reason for this is Musk's massive support for Donald Trump. Added to this is his sympathy for right-wing nationalist parties in some European countries. Some Teslas even bear the sticker "I bought this before Elon went crazy."

In Germany alone, the largest European market, sales slumped by almost 60 percent in the first half of the year, even though the overall market for electric cars has grown significantly. Even brands like MG Roewe , Mitsubishi, and Suzuki sold more cars than Tesla. The situation is similar in many other European markets. Musk is also losing market share in China. While competition in the electric segment is generally increasing worldwide, China is by far the most competitive market. Competitors like BYD and Xiaomi, as well as some lesser-known brands, are putting pressure on Tesla.

Musk is also a highly polarizing figure in his home country, the United States. Stock market traders are also frightened because his former "bromance" with Trump has turned into open hostility. Recently, Musk even threatened to found his own political party. Trump then threatened to potentially end subsidies for his companies. Many realized early on that two such large egos had no place in the White House. But when the richest man in the world takes on the most powerful man in the world, the most powerful man is likely to win.

Many investors and customers do not appreciate the political excursions and the resulting neglect of their companies. With the exception of the largely flopped Cybertruck , Tesla hasn't launched a new model in years, giving its products a facelift at best. The model range is accordingly completely outdated. Experts also criticize Tesla for losing its innovation leadership. Added to this is an unclear strategy and chaotic personnel policies among top management.

Now Musk is turning his attention to robotaxis, humanoid robots, and artificial intelligence. A new, cheaper Tesla, which media reports suggested might have been called the Model 2, doesn't seem to be coming. Instead, he's now intensively promoting and testing self-driving cars. Recently, a vehicle from the Austin, Texas, factory apparently delivered itself to a customer living 30 minutes away. That was a good publicity stunt.

But in the US, Google's Waymo is significantly ahead of Tesla in the robotaxis market, and self-driving cars are already available in China as well. Musk is also pursuing a bold approach. He relies solely on cameras, whereas all his competitors use radar and lidar in addition to cameras. This combination is considered significantly safer in terms of traffic, which offers a significant advantage not only for the authorities but also for customers.

Currently, Tesla's prospects are bleak, and a turnaround is not in sight. But Elon Musk has often shown in his life that he can make the impossible possible—with Tesla, Space X, and Starlink. Therefore, the brilliant eccentric should not be underestimated, let alone written off.

You can follow Frankfurt business correspondent Michael Rasch on the platforms X, Linkedin and Xing .