Protests Target Elon Musk as Tesla Faces Sales Decline, Lawsuit

Tesla is navigating a period of significant challenges, including a 71% plunge in first-quarter profits, substantial stock declines, and growing concern about CEO Elon Musk's divided attention due to his government role. In response to mounting shareholder pressure and persistent protests targeting Tesla's brand and Musk's political involvement, Musk has pledged to step back from government duties and refocus on Tesla. The company is seeking to boost sales and regain customer loyalty with new incentives, such as reintroducing the Full Self-Driving (FSD) transfer option and offering a $2,000 loyalty discount to encourage upgrades to the new Model Y. However, Tesla faces continued criticism and legal challenges regarding its autonomous driving claims, highlighted by a recent lawsuit alleging misleading marketing of its Autopilot and FSD capabilities following a crash. Meanwhile, competition in the autonomous vehicle sector is intensifying, as Waymo and Toyota announced a partnership to advance robotaxi technology for consumer vehicles, potentially threatening Tesla's market position. These developments underscore both the internal and external pressures Tesla must confront as it seeks to stabilize operations and maintain its leadership in electric and autonomous vehicles.