On March 20, Tesla announced a recall of 46,000 Cybertruck electric pickup trucks in the US due to a defect in the stainless steel exterior panels that can detach while the vehicle is running. The company will replace the components free of charge. According to the US National Highway Traffic Safety Administration, panels that detach on the road will be dangerous and increase the risk of accidents.

A day earlier, protesters said they were planning the largest-ever action against Elon Musk's electric car company, with 500 demonstrations at Tesla showrooms worldwide on March 29.

Tesla shares have lost a third of their value in the past month as investors increasingly worry that Musk is neglecting his business while focusing too much on the work of the Department of Government Efficiency (DOGE) in the Trump administration.

tesla cybertruck bloomberg
Tesla recalls 46,000 Cybertruck electric pickup trucks due to defects related to stainless steel exterior panels. Photo: Bloomberg

Dan Ives, a director at financial firm Wedbush and a diehard Tesla fan, believes that Musk’s role in running DOGE is damaging his personal reputation and the company he owns. While initial assessments suggested the damage was limited, it has now spread globally in just a few weeks. He calls it a “tornado of crises” for both Musk and Tesla.

As DOGE Secretary, Musk and his staff have fired and eliminated and cut several federal spending programs. However, a US judge ruled this week that Musk and DOGE may have violated the US Constitution by shutting down the US Agency for International Development (USAID).

Ives cited protests at Tesla showrooms, vandalized cars and protests around the world as the reasons for Tesla’s stock drop. He said Musk was facing a “moment of truth” and needed to act.

“In our view, how Musk responds to this in the coming months will be pivotal to Tesla’s long-term growth trajectory. Tesla is Musk and Musk is Tesla… they are synonymous, inextricably linked,” the experts wrote in a report to investors.

Ives offered two pieces of advice to the Tesla boss to prevent the crisis from becoming an “even bigger black swan event.” A “black swan” is a term used to describe an unexpected, unpredictable event that has a significant economic impact.

Accordingly, Musk needs to officially announce that he will balance running DOGE and being CEO of Tesla, which will somewhat minimize the damage to Tesla's reputation. Next, Musk needs to come up with a plan and time to release a new, cheaper car model as well as deploy fully autonomous vehicles in Austin, Texas in June.

Meanwhile, the 2025 Vancouver International Auto Show (Canada), taking place from March 20 to 24, removed Tesla from the list of attendees just hours before the event due to concerns for the safety of attendees, exhibitors and staff.

Last year, nearly 130,000 people visited the show. About 2,000 models are expected to appear at this year's show.

Musk himself has faced backlash in Canada for his support of President Trump. Tensions have risen in recent weeks after Trump dragged Canada into a bitter trade war and repeatedly suggested making Canada the 51st state of the United States.

More than 375,000 Canadians have signed a petition to strip Musk of his Canadian citizenship.

On March 18, US Attorney General Pam Bondi called the attacks on Tesla dealerships “terrorism.” In an interview with Fox News this week, Musk called anti-Tesla protesters “crazy” and blamed the protests on his relationship with DOGE.

US Commerce Secretary Howard Lutnick defended Tesla and urged Americans to buy the company ’s stock. “It’s unbelievable how cheap it is. It will never be this cheap again.”

(According to The Guardian, Fox News)