TESLA SALES DROP – Musk STAYS the Course

Political Spending Takes a Back Seat

In what appears to be a calculated move to appease frustrated investors, Musk announced plans to scale back his political spending. After pouring millions into various campaigns and political action committees, the billionaire seems to have finally realized that alienating half your customer base might not be the best business strategy. Of course, he only decided this after already committing a fortune to his preferred candidates and causes. How convenient that this revelation comes right when Tesla’s sales are plummeting in certain markets.

“Elon Musk said he’s committed to still leading Tesla Inc. five years from now and expects to pare back his political spending, assuaging some investors’ concerns about the future of his most valuable company.” – Elon Musk.

This newfound political restraint comes alongside Musk’s continuing criticism of individuals like Bill Gates and a Delaware judge who dared to rule against his obscene Tesla pay package. The hypocrisy is breathtaking – he’ll tone down political spending while continuing to attack anyone who challenges his personal fortune. Speaking of that compensation package, Musk remained dismissively confident that the legal dispute in Delaware would have no impact on his payday. The audacity of billionaires never ceases to amaze.

Sales Decline? What Sales Decline?

Perhaps the most telling part of Musk’s Qatar forum appearance was his remarkable ability to spin Tesla’s declining sales. European deliveries plunged a staggering 37% in Q1 2025, even as the overall EV market grew. That’s not just a stumble – it’s a face-plant of epic proportions. But according to Musk, there’s absolutely nothing to worry about because the stock price recently recovered. Apparently, we’re supposed to ignore actual vehicle sales in favor of Wall Street speculation.

Musk casually acknowledged Europe as Tesla’s “weakest market” while claiming sales remain strong elsewhere. This cavalier attitude toward massive market share losses in an entire continent perfectly encapsulates the disconnect between Musk’s reality and everyone else’s. The fact that Tesla stock still rose 0.8% in Tuesday trading after these revelations shows just how divorced the company’s valuation has become from its actual performance. It’s almost as if investors are buying shares in Elon Musk himself rather than the company he runs.

The Future of Tesla: Robots Over Cars?

What’s particularly concerning in all this is Musk’s apparent pivot away from Tesla’s core automotive business toward his pet robotics projects. While European sales crater and competition intensifies globally, Musk seems more focused on humanoid robots that don’t yet exist in any meaningful commercial form. This obsession with maintaining control to “guide the company to do the right thing” regarding robots suggests Musk may be more interested in chasing sci-fi fantasies than addressing Tesla’s very real and immediate business challenges.

Meanwhile, Musk casually mentioned spinning off SpaceX’s Starlink satellite business, further indicating his attention is scattered across his many ventures. The question conservative investors should be asking is: Does Tesla have a serious automotive strategy to combat declining market share, or is Musk simply using the company as a funding vehicle for his next shiny project? As Tesla’s European sales continue their freefall, the answer seems increasingly obvious – and increasingly concerning for anyone who believes in focusing on core business fundamentals.