Investors are looking for evidence Musk’s politics are hurting Tesla. It’s hard to find, but California might be turning against Musk—slowly.

Tesla (NASDAQ: TSLA) shares initially shrugged off a weak earnings report before the stock got caught in the trade-war sell-off. The electric vehicle (EV) maker had a tough year in 2024, although Chief Executive Officer Elon Musk continues to be very upbeat about the future.

For years, Tesla has been a leader in the electric vehicle market. The company’s products have pushed envelopes, raised the bar, and generated unprecedented buzz – along with booming sales. However, the days of Tesla’s total dominance in the EV world may be drawing to a close.