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When people are protesting at an automakers retail locations because of the CEOs political actions, when that automakers sales are plummeting around the world, when that companys vehicle lineup is sorely in need of a hot new model or redesign that isnt coming any time soon, and when that companys market valuation is based largely on the promise of technological advancements that have yet to be demonstrated, that company is in trouble. That company, of course, is Tesla, which is in the midst of a corporate self-destruction unlike any Ive seen. To help you understand what were witnessing, Im going to lay out Teslas problems, with assists from analysts, and then explain whydespite the pleasure many people derive from seeing Elon Musks company implodewe should worry about what a weakened Tesla means for the U.S. electric vehicle market. I see a company that has accomplished a lot, but is facing more challenges than ever, said Karl Brauer, a longtime auto industry analyst who now works for iSeeCars.com. Theres nothing super exciting, or even really modestly exciting, coming down the Tesla product pipeline, he said. Every time weve been promised some new, refreshed version of one of [Teslas] cars, its been a pretty weak refresh, to be honest. Hes talking about Tesla as an automaker, but it differs significantly from other car brands. Teslas justification for its market valuation is based on the idea that its cars are a step toward a future of profits in self-driving vehicles, robotics and other businesses. Auto sales help to provide a financial bridge to the future, and that bridge looks shaky. We struggle to think of anything analogous in the history of the automotive industry, in which a brand has lost so much value so quickly, said a March 12 research note from J.P. Morgan. The investment bank cut its estimates for how many vehicles Tesla will deliver in the first quarter and for 2025 as a whole, projecting that the automaker will fail to meet its sales guidance and continue to lose value. This financial reckoning follows a post-election boom for Tesla, whose CEO, Musk, is a leading supporter of Donald Trump and now oversees the newly created, agency-dismantling Department of Government Efficiency. Musk is working in government while maintaining his role as head of his companies. Tesla did not respond to a request for comment. Its share price peaked on Dec. 17 when it closed at $479.86. Its market capitalization, which is the sum of the value of its stock, was $1.5 trillion. As of the market close on Wednesday, the share price was $235.86, down 51% from the peak, and the market cap was $759 billion. For perspective, the market cap of General Motors is about $50 billion. [Image: Paul Horn/Inside Climate News] Plenty of other analysts share a bleak view of Tesla. For example, Wells Fargo Securities has set a price target of $130 per share for Tesla, which would be nausea-inducing for anybody who bought near the peak. [I]investors are starting to agree that there is no fun in the fundamentals, Wells Fargo said in a March 14 note. And yet, some analysts continue to see a bright future for Tesla. Wedbush Securities is sticking with its $550-per-share price target. Dan Ives, a Wedbush analyst, said in a recent note that Tesla is entering a period of major growth and innovation. One thing that just about every observer agrees on is the importance of Teslas launch of a self-driving taxi service in Austin, Texas, which Musk has said will happen in June. Also, Tesla has said it will provide more information about development of a low-cost car. Reuters reported last week that Tesla is developing a smaller and less expensive version of the Model Y crossover, which Tesla has not confirmed. The Model Y is the companys top seller, and has a base price of $61,630 before the $7,500 federal tax credit. If the taxi launch and a new-model announcement happen and provide enough detail to assure investors, then Tesla could ease the panic. But many analysts arent betting on it. We see a high probability of a delay or underwhelming launch, said Wells Fargo, about the taxis. Aside from product issues, Musk is likely to continue to do things that alienate customers. His association with the Trump administration and his role in layoffs and agency overhauls have made Tesla a toxic brand. Opponents of Musk and Trump have organized protests at Tesla showrooms. Social media is filled with photos of Teslas that have been vandalized. Some Tesla owners have put stickers on their cars with messages showing their disapproval of Musk, such as I bought this before we knew Elon was crazy. Its not just a U.S. phenomenon. Musks support for the far-right AfD party in Germany and his support for Trump have hurt Tesla with European buyers and helped inspire protests at Tesla locations there. (Im reminded of Brewsters Millions, the 1985 movie starring Richard Pryor about a man who, for reasons of plot contrivance, has 30 days to get rid of an immense amount of money. A U.S. corporate executive taking time to give a live video ddress at an AfD rally is a Brewsters Millions kind of move. A recent Google search tells me I am nowhere near the first person to make this observation.) Tesla sales also are way down in China, the worlds largest automotive market, which is likely due to a combination of backlash against Musk for his support of Trump, and competition from cheaper Chinese EV brands. While some people may be pleased to see Tesla and Musk struggle, and most of the damage was self-inflicted, Teslas swoon is probably bad for the U.S. EV market. It helps to have a sense of just how big Tesla is relative to other EV makers that sell in the United States. Last year, 48% of the EVs sold here were Teslas and no competitor cracked 10%, according to Cox Automotive. Tesla also is a key player in building and maintaining EV charging stations. If any of the companies behind charging infrastructure run into financial problems, that could be a big concern, said Samantha Houston, a senior manager for the Clean Transportation program at the Union of Concerned Scientists. Having those publicly accessible networks be reliable, and expanding them, is an essential piece, she said. If Tesla or other charging companies scale back their efforts, it would be an impediment to increasing EV ownership for all brands. This is especially true now that most automakers have adopted Teslas North American Charging Standard, which means Tesla charging stations can be used by people driving other brands, Houston said. In addition to practical issues such as charging, Teslas struggles could fuel a perception problem for EVs. I dont think its good for the EV market to have Tesla seen in a negative lightimploding, said William Roberts, senior research analyst for Rho Motion, the United Kingdom-based research firm that covers batteries and EVs. He explained that Tesla is synonymous with EVs, especially for consumers in the United States. For Tesla to be viewed as an object of derision is not helpful for easing the concerns of potential buyers, especially those who are deciding between an EV and a gasoline vehicle. At the same time, sales figures show that other automakers were able to increase their EV sales to offset Teslas decline, and then some. Teslas U.S. sales were down 5.6% last year compared to 2023, while overall EV sales in the nationwhich includes Teslawere up by 7.3%, according to Cox. Through the first two months of 2025, Tesla sales were down, especially in Europe and China, but global EV sales were way up, according to Rho Motion. Global sales were up 30%, including an increase of 35% in China and 20% in Europe and the United States/Canada. (Rho Motion includes plug-in hybrids in its totals, while Cox doesnt.) I just dont see the EV sales surge as a reason to think that the market is shaking off Teslas problems. The reason is simple: We dont know what sales would have been with a strong Tesla. In sports terms, a star player is limping. Thats almost never good for the game. This article originally appeared on Inside Climate News. It is republished with permission. Sign up for their newsletter here.
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Section 230 of the Communications Decency Actthe provision that protects tech platforms from legal liability for content posted by their usershas long been a point of contention among lawmakers. Since its passage in 1996, it has fueled frustration across the political spectrum, with critics arguing that it enables Big Tech to dodge accountability. Now, nearly three decades later, a bipartisan group of senators is making a renewed push to dismantle it, with Senators Lindsey Graham and Dick Durbin crossing party lines to draft a bill aimed at repealing Section 230, according to The Information. For years, Section 230 has been a scapegoat not just for politicians eager to rein in tech giants, but also for users frustrated by the prevalence of harmful content online. The clause has often been cited by platforms as a reason they cannotor will notremove content that, while not outright illegal, may be offensive or harmful, such as hate speech or harassment. Originally intended to foster innovation during the internets formative years, the provision now feels outdated to many observers. Few beyond the C-suites and legal departments of tech companies still support it. Still, experts warn that repealing Section 230 outright would be a mistake. Sunsetting Section 230 without proposing ways to change it is like taking a hostage without having a list of demands ready, says Adam Kovacevich, founder and CEO of the Chamber of Progress, a tech industry trade group. This is a deeply unserious exercise that reflects the bipartisan opposition to 230 is only surface-deep. Kovacevich argues that reformnot repealis the more responsible path forward. If Congress doesnt like Section 230, it should mend it, not end it, he says. The bipartisan momentum behind the new bill gives it more traction than past attempts, which have often faltered due to partisan divides. But even with broader political alignment, a full repeal could backfire. Republicans have criticized the provision for allowing platforms to suppress content they favor, while Democrats believe it enables platforms to avoid accountability for hosting harmful material. Both sides want changebut for opposing reasons. Both Democrats and Republicans should be wary of getting rid of Section 230, warns Anupam Chander, a law professor at Georgetown University. He notes that the law protects a range of actions that each party valueseven if it also enables behavior they oppose. Section 230 protects platforms against lawsuits when they get rid of hate speech, such as lawsuits alleging discrimination against men or religion, Chander says. Thats a key concern for liberal-leaning individuals who view anti-DEI backlash and culture war rhetoric as regressive. Yet conservatives, too, benefit from the law’s broad protections. Section 230 also protects platforms like X or Truth Social so that they aren’t held liable for the speech they tolerate on their platforms, he says. Without those protections, platforms could face costly legal challenges for hosting controversial speechpotentially chilling the very discourse their users want to preserve. Both sides want different things from a post-230 world, Chander adds, but may find the speech they like deemed too risky by internet platforms. Ultimately, he argues, it’s safer to reform the law than to scrap it entirely: Being sued in the United States without a liability shield is an expensive and time-consuming undertaking.
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E-Commerce
Turkish authorities have detained 1,133 people across Turkey since the start of protests five days ago against the detention of Istanbul Mayor Ekrem Imamoglu, Interior Minister Ali Yerlikaya said on Monday. The detention last Wednesday of Imamoglu, President Tayyip Erdogan’s main political rival, has triggered the biggest street protests in Turkey in more than a decade. On Sunday, a court jailed him, pending trial, on corruption charges that he denies. Despite bans on street gatherings in many cities, the mostly peaceful anti-government demonstrations continued for a fifth consecutive night on Sunday, with hundreds of thousands taking part. Yerlikaya said 123 police officers had been injured during the protests so far, adding that the government would not allow “the terrorising of the streets”. Those detained include nine journalists who covered overnight protests in several cities, the Journalists’ Union of Turkey said on Monday. It was not immediately clear why the journalists were detained. An Agence France Presse (AFP) staff photographer is among the detained journalists, the union said in a post on X. Imamoglu’s main opposition Republican People’s Party (CHP) has been calling for protests against the court decision to arrest the mayor, which they label as politicised and undemocratic. Imamoglu has denied the charges he faces as “unimaginable accusations and slanders” and has also called for nationwide protests. Erdogan said last week that the government would not accept “the disruption of public order”. His government denies that the investigations are politically motivated and says the courts are independent. Omer Celik, spokesperson for Erdogan’s ruling AK Party, said on Monday the CHP’s call for protests was aimed at covering up the opposition’s shortcomings. “Democratic protest is a (fundamental) right, but the language used by the CHP is not the language of democratic protest,” Celik said. JAILED ‘FOR NO REASON’ Imamoglu, 54, was jailed pending trial on Sunday, as the CHP held a primary election to name him presidential candidate. Some 15 million votes were cast in support of the mayor. News of Imamoglu’s arrest covered the front pages of Turkish newspapers on Monday, with opposition media suggesting the mayor was arrested for being the most credible challenger to Erdogan. The mayor’s supporters said on Monday the jailing of Imamoglu demonstrated a lack of justice in Turkey. “I think there is an injustice committed against Imamoglu. They put the man in prison for no reason,” said Adem Bali, a 22- year-old construction worker. Cigdem Tatlica, an unemployed 50-year-old, said she believed there was no justice in Turkey. “This system cannot continue like this.” In an address to the demonstration in Istanbul’s Sarachane district in front of the municipality building, CHP leader Ozgur Ozel said on Sunday that they would continue the protests until Imamoglu was released. Huseyin Hayatsever and Ali Kucukgocmen, Reuters
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