Elon Musk is facing a catastrophic crisis as Tesla’s shares have plummeted a staggering 43%, wiping out an astonishing $671 billion in market value. This unprecedented decline has sent shockwaves through the financial world, sparked by the European Union’s retaliatory tariffs and Musk’s controversial political antics. Once the undisputed leader of the electric vehicle (EV) sector, Tesla now finds its future hanging by a thread, with investors in a panic and fans questioning the company’s viability.

The turmoil began in mid-March when Tesla’s market cap nosedived from $1.56 trillion to just $889.2 billion, driven by weak financial results and missed delivery targets. January sales in key markets like Germany dropped by an alarming 70%, as fierce competition from local automakers like Volkswagen and Renault intensified. Musk’s polarizing public persona has further alienated European consumers, causing them to gravitate toward brands that align more closely with their values.

Adding fuel to the fire, the EU has imposed a hefty 7.8% tariff on Chinese-made Tesla vehicles, exacerbating supply chain costs and forcing the company to hike prices, rendering its models less competitive. As Tesla grapples with these challenges, internal issues loom large, with senior executives departing and production delays at the Berlin Gigafactory raising alarms about the company’s stability.

The stakes couldn’t be higher. If Musk fails to regain investor confidence and adapt to the rapidly shifting market landscape, Tesla’s dominance could evaporate, leaving the once-mighty brand struggling to survive. The clock is ticking, and all eyes are on Musk to see if he can steer Tesla back to safety or if this is the beginning of the end for the EV giant.