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Elon Musk forced to step up at Tesla to fix brand damage as profits plunge | The Business | ABC NEWS

Elon Musk is under intense pressure to salvage Tesla’s reputation as profits plummet and brand damage becomes increasingly evident. As the automaker grapples with a staggering 41% drop in shares this year, Musk has made a significant pivot away from his controversial ties to the Trump administration, marking what many analysts see as a desperate bid to restore investor confidence.

Recent reports suggest that Musk’s involvement in government has backfired spectacularly, with tariffs and policy missteps leading to a “train wreck” for Tesla’s brand image. Investors are voicing frustration as Tesla fails to provide forward guidance for the upcoming quarter, leaving Wall Street with lowered expectations for vehicle deliveries. Compounding this turmoil is the fierce competition from China’s BYD, which has delivered over 4 million vehicles compared to Tesla’s 1.8 million, raising the stakes for Musk to refocus on his company’s core mission.

The urgency of Musk’s return to Tesla leadership cannot be overstated. As analysts debate whether he can reclaim the reins effectively, the clock is ticking. With tariffs becoming a focal point of concern, Musk’s previous alignment with Trump may have only exacerbated Tesla’s challenges. Observers believe that his distancing from the administration is a necessary move to mitigate ongoing damage.

As the markets react to this chaotic environment, the question remains: can Musk turn the tide for Tesla before it’s too late? Investors are anxiously watching for signs of a strategic comeback as the automotive giant navigates these turbulent waters. The pressure is mounting, and the future of Tesla hangs in the balance—Musk must act decisively or risk losing everything.

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