Drastic sales declines and growing criticism of Elon Musk are raising fears about the future of Tesla owners and their cars. But what would actually happen if a car brand like Tesla shuts down in a country – or the entire world?
Tesla's latest quarterly report shows a significant drop in sales. In the first quarter of 2025, Tesla delivered only 336,681 cars worldwide – the lowest number in almost three years.
Fears of a serious collapse are growing among investors and car owners around the world. But how bad is it really?
Tesla has lost 45 percent of its value since December 2024. This is happening at the same time that CEO Elon Musk has come under political pressure, including as an advisor to Donald Trump and as a supporter of right-wing parties in Europe.
This has sparked protests and vandalism of Tesla stores in several countries. Many owners are now openly distancing themselves from Musk – including by putting Elon Sucks stickers on their cars.
What happens if Tesla withdraws from a country?
If Tesla decides to close in a certain country – for example due to very poor sales figures – it will primarily affect access to:
- Service and parts : Tesla has a closed service chain. If they pull out of a country, it will take time for independent repair shops to provide the same level of service and access to original parts.
- Software Updates : Tesla cars rely on OTA updates. Without these, features may degrade or become unusable over time.
- Warranty and Support : If Tesla shuts down in a country, warranty coverage and support calls will, in many cases, cease.
If Tesla collapses globally
A global shutdown, for example after a total fire collapse, will have even worse consequences:
- Used value : The resale value of Tesla's cars will drop significantly. As has been seen with the Fisker Ocean, for example.
- Supply chains : The production of spare parts will stop and it may take years for other actors to take over.
- Network-based features : Navigation, remote control via app, and charging status may stop completely if Tesla shuts down the servers.
Competition and Model Y problems
Tesla is currently losing market share to BYD, Volkswagen and BMW. BYD in particular is expected to overtake Tesla in 2025 with a market share of 15.7 percent compared to Tesla's 15.3.
The Model Y has been Tesla's best-selling model, but the successor with updated design and software has struggled to catch on. And Tesla sales in Europe have fallen for three straight quarters. Critics point out that the design of the new models is dividing buyers and that quality is lagging.
Political unrest hits Tesla hard
Elon Musk's close ties to Donald Trump have proven to be a double-edged sword. After Trump's new 25 percent tariff on car imports, many fear for Tesla's supply chains and export strategy.
At the same time, Musk's political support for controversial parties in Europe has led parts of the public to turn against both the man and the brand.
Tesla owners are increasingly concerned about the future of the brand and the value of their car. And this applies not only in Denmark, but in most of the world.
Can Tesla correct its negative spiral?
Tesla plans to launch a cheaper model in 2025, but little is known about the project. The Cybertruck has not lived up to expectations and demand is low.
Elon Musk has no longer announced specific growth targets, and the upcoming quarterly financial statements will be crucial for the future.
It's important to note, however, that for now there's no confirmation that Tesla is closing. But sales have plummeted in a way never before seen in the auto industry – and Tesla owners should be aware of the risks. Anything else would be irresponsible.
But a total collapse or bankruptcy of Tesla as a car brand is not likely right now – but it is no longer completely unthinkable, according to experts.
