Tesla, the pioneering electric vehicle (EV) manufacturer, is facing turbulent times as its Q1 sales have taken a hit, global protests against the company have erupted, and its stock price continues to fall. The company's struggles have created an opportunity for its rivals to gain ground, with many offering sweet trade-in deals and other incentives to attract customers.

The decline in Tesla's fortunes can be attributed, in part, to the changing public perception of its CEO, Elon Musk. Once hailed as a symbol of innovation, Musk's political alignment with President Trump and his activities as the unofficial leader of the Department of Government Efficiency have led to a shift in public opinion. This, combined with the company's near-miss with bankruptcy in the past, has resulted in a significant drop in Tesla's sales and stock price.

Meanwhile, automakers that have long trailed Tesla in EV sales are taking advantage of the company's struggles. Ford, for instance, is offering discounts to boost sales in the short term, while Volkswagen has told dealerships it plans to add an import fee to the price of imported cars sold in the United States. The tariffs announced by Trump could provide some respite for Tesla, as its vehicles and many of its components are made in the United States. However, it remains to be seen if this will be enough to stop the bleeding.

Tesla's energy-storage business is also likely to be affected by the tariffs, which could further exacerbate the company's problems. The chaos surrounding the tariffs will linger, and it's still unclear how automakers will react and adjust in the long term. As the situation continues to unfold, one thing is certain – Tesla's rivals are seizing the opportunity to gain ground in the EV market.

In other news, Tesla appears poised to launch a robotaxi service in Austin this summer, but its outreach to the city has been limited. This is in contrast to companies like Waymo and Cruise, which have made a concerted effort to connect with city stakeholders before launching their services. Some government officials have also expressed safety concerns around Tesla's brand of autonomy, which relies solely on cameras for perception.

In the world of EV startups, there were a few notable deals this week. EVident Battery, a Massachusetts-based advanced battery inspection tech startup, raised $3.2 million in a seed funding round led by Ibex Investors. Fourier, a hydrogen startup, raised $18.5 million in a Series A round led by General Catalyst and Paramark Ventures. Windrose Technology, an EV maker based in Belgium and with Chinese roots, plans to file for an IPO in the U.S. to raise $400 million.

In other industry news, Harbinger, a medium-duty EV manufacturer, officially started production and has manufactured its first 100 salable units. The company has also inserted itself into the bankruptcy proceedings of EV startup Canoo, filing an objection to the sale of Canoo's assets to its CEO. Rivian, meanwhile, delivered just 8,640 vehicles in the first three months of 2025, its worst quarterly mark since the end of 2022.

Finally, Redwood Materials, the battery materials and recycling startup founded by former Tesla CTO JB Straubel, opened a research and development center in San Francisco. The 15,000-square-foot facility is equipped with lab space to support engineers working on every point of the battery ecosystem, from chemical engineering and cathode science to software and electrical engineering.