Tesla Rivals See Their Chance to Overtake Elon Musk

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Theo Burman is a Newsweek Live News Reporter based in London, U.K. He writes about U.S. politics and international news, with a focus on infrastructure and technology. He has covered technological and cultural issues extensively in the U.S. and the U.K., such as the rise of Elon Musk and other tech figures within the conservative movement, and the development of high-profile international construction projects. Theo joined Newsweek in 2024 and has previously written for Dexerto, PinkNews, and News UK. He is a graduate of Durham University and News Associates. You can get in touch with Theo by emailing t.burman@newsweek.com. Languages: English.

Theo Burman

Live News Reporter

Tesla is facing continued pressure both financially and culturally, and for many of its top competitors, its space in the car market looks unstable.

Elon Musk’s electric vehicle company has faced significant public backlash following the CEO’s ever-tightening alliance with President Donald Trump. This response, combined with a declining stock price, has rivals making moves to capitalize on the weakened brand.

Newsweek reached out to Tesla via email for comment.

The Context

Tesla is Musk’s most well-known brand and the biggest contributor to his net worth.

Following Musk’s appointment as head of the Department of Government Efficiency (DOGE) and subsequent role in the Trump administration’s cuts to federal spending, protests against Tesla became synonymous with anti-Musk and anti-Trump sentiment, with demonstrators targeting Tesla dealerships worldwide.

What To Know

As a result, Tesla’s stock is feeling the strain, not helped by Trump’s aggressive tariff policy, which clamps down on foreign exports that make up much of Tesla’s supply chain.

Tesla’s share price dropped 4 percent over the weekend. The stock is down 41 percent since the start of the year, 47 percent since Trump’s inauguration, and 38 percent in the past month.

In 2024, Tesla shipped three of the top five most popular electric vehicles in the U.S., with the Model Y and Model 3 being the two most-bought EVs in the country last year.

But now, other competitors that also ranked highly on the list are reporting high growth in 2025’s first quarter, which indicates that Tesla’s crown is slipping.

“So far in 2025, according to January and February sales data, Hyundai electric vehicle sales have increased 10 percent, while hybrid sales have grown 65 percent,” a spokesperson for Hyundai told Newsweek.

“For EVs, the growth is being driven by IONIQ 5, which is up 36 percent. IONIQ 6 sales have increased by 13 percent.”

The IONIQ 5, which already outsold the Tesla Cybertruck, was the fourth-best-selling electric car last year, making it one of the top alternatives to Tesla for shoppers on the market, according to data from Electrek.

In other words, a reported spike in sales of Tesla alternatives coincided with Musk’s increasing political action in the early months of 2025.

Similar moves are being made by Tesla’s rivals in the international market. China’s BYD Auto, the largest electric car manufacturer in the world, plans to double its sales outside China, focusing on markets where Tesla is facing backlash, including Europe and parts of Latin America.

Chairman Wang Chuanfu said that BYD would target the United Kingdom, Southeast Asia, and Latin America in an expansion that takes advantage of sentiment in Europe, where protests against Tesla have also appeared, in response to both Musk and Vice President JD Vance attempting to influence politics there.

Rella Suskin, an equity analyst at financial firm Morningstar, told Newsweek that further competition is on the way in both the electric car and conventional car markets, with many companies eyeing the possibility of construction in the U.S.

“Currently, the United States accounts for a mid-teens percentage of Volkswagen brand sales volumes, Suskin said.

“The company’s plans to expand significantly in the U.S. are evident through ongoing construction of a manufacturing facility for its U.S.-focused Scout brand, set to debut in 2027. Unlike Mercedes and BMW, Volkswagen sources most of its engines and transmissions domestically within North America.”

What People Are Saying

Elon Musk told Sean Hannity earlier in March: “Tesla is a peaceful company; we’ve never done anything harmful, I’ve never done anything harmful; I’ve always done productive things. So there’s some kind of mental illness thing going on because this doesn’t make any sense.”

What Happens Next

Tesla is expected to report its first-quarter delivery numbers on Wednesday. The statistics are likely to reveal the true impact of Musk’s first few months of political power on the sales of his most important company.

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Theo Burman is a Newsweek Live News Reporter based in London, U.K. He writes about U.S. politics and international news, with a focus on infrastructure and technology. He has covered technological and cultural issues extensively in the U.S. and the U.K., such as the rise of Elon Musk and other tech figures within the conservative movement, and the development of high-profile international construction projects. Theo joined Newsweek in 2024 and has previously written for Dexerto, PinkNews, and News UK. He is a graduate of Durham University and News Associates. You can get in touch with Theo by emailing t.burman@newsweek.com. Languages: English.

Theo Burman

Live News Reporter

Tesla is facing continued pressure both financially and culturally, and for many of its top competitors, its space in the car market looks unstable.

Elon Musk’s electric vehicle company has faced significant public backlash following the CEO’s ever-tightening alliance with President Donald Trump. This response, combined with a declining stock price, has rivals making moves to capitalize on the weakened brand.

Newsweek reached out to Tesla via email for comment.

The Context

Tesla is Musk’s most well-known brand and the biggest contributor to his net worth.

Following Musk’s appointment as head of the Department of Government Efficiency (DOGE) and subsequent role in the Trump administration’s cuts to federal spending, protests against Tesla became synonymous with anti-Musk and anti-Trump sentiment, with demonstrators targeting Tesla dealerships worldwide.

What To Know

As a result, Tesla’s stock is feeling the strain, not helped by Trump’s aggressive tariff policy, which clamps down on foreign exports that make up much of Tesla’s supply chain.

Tesla’s share price dropped 4 percent over the weekend. The stock is down 41 percent since the start of the year, 47 percent since Trump’s inauguration, and 38 percent in the past month.

In 2024, Tesla shipped three of the top five most popular electric vehicles in the U.S., with the Model Y and Model 3 being the two most-bought EVs in the country last year.

But now, other competitors that also ranked highly on the list are reporting high growth in 2025’s first quarter, which indicates that Tesla’s crown is slipping.

“So far in 2025, according to January and February sales data, Hyundai electric vehicle sales have increased 10 percent, while hybrid sales have grown 65 percent,” a spokesperson for Hyundai told Newsweek.

“For EVs, the growth is being driven by IONIQ 5, which is up 36 percent. IONIQ 6 sales have increased by 13 percent.”

The IONIQ 5, which already outsold the Tesla Cybertruck, was the fourth-best-selling electric car last year, making it one of the top alternatives to Tesla for shoppers on the market, according to data from Electrek.

In other words, a reported spike in sales of Tesla alternatives coincided with Musk’s increasing political action in the early months of 2025.

Similar moves are being made by Tesla’s rivals in the international market. China’s BYD Auto, the largest electric car manufacturer in the world, plans to double its sales outside China, focusing on markets where Tesla is facing backlash, including Europe and parts of Latin America.

Chairman Wang Chuanfu said that BYD would target the United Kingdom, Southeast Asia, and Latin America in an expansion that takes advantage of sentiment in Europe, where protests against Tesla have also appeared, in response to both Musk and Vice President JD Vance attempting to influence politics there.

Rella Suskin, an equity analyst at financial firm Morningstar, told Newsweek that further competition is on the way in both the electric car and conventional car markets, with many companies eyeing the possibility of construction in the U.S.

“Currently, the United States accounts for a mid-teens percentage of Volkswagen brand sales volumes, Suskin said.

“The company’s plans to expand significantly in the U.S. are evident through ongoing construction of a manufacturing facility for its U.S.-focused Scout brand, set to debut in 2027. Unlike Mercedes and BMW, Volkswagen sources most of its engines and transmissions domestically within North America.”

What People Are Saying

Elon Musk told Sean Hannity earlier in March: “Tesla is a peaceful company; we’ve never done anything harmful, I’ve never done anything harmful; I’ve always done productive things. So there’s some kind of mental illness thing going on because this doesn’t make any sense.”

What Happens Next

Tesla is expected to report its first-quarter delivery numbers on Wednesday. The statistics are likely to reveal the true impact of Musk’s first few months of political power on the sales of his most important company.

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Moderately
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