Comment: Why Tesla, Elon Musk will bounce back from the brink

It’s easy to get swept up in dealership bombings and plummeting share prices. But you’d be stupid to bet against Elon Musk or Tesla. This is why.

COMMENT: Tesla has endured a brutal start to the year, but it will bounce back.

Elon Musk’s personal brand has been battered by months of negative headlines, and as a result, Tesla has been bruised.

But there are smoother roads ahead for the American EV giant.

For a start, Tesla still makes some of the best electric cars on sale today.

I’ve just spent time in the brand’s latest car – the updated Tesla Model Y known in some circles as the “Juniper”.

MORE: Musk addresses huge losses

Tesla’s Model Y is more than a match for the BYD Sealion 7 and Volkswagen ID. 4 Pro. Picture: Mark Bean

The original Tesla Model Y was the world’s best-selling car, a vehicle that shifted perceptions surrounding EVs while winning numerous industry awards – including News Corp Australia’s 2022 Car of the Year title.

The new model is even better.

It’s quieter and more refined, with improved range, a better interior and a sharp price.

The brand listened to criticism surrounding missteps on the Model 3, and made sure to use a conventional indicator stalk instead of fussy buttons on the steering wheel.

The new machine is too good to ignore.

MORE: Tesla mileage scandal hits the US

Inside the new Tesla Model Y. Picture: Mark Bean

And the brand is responding to cheaper alternatives from China with new models tipped to include a smaller option than the existing Model 3, and a stripped-back take on the family-friendly Model Y.

Sure, Tesla has wandered out of its lane from time to time.

The high-performance Tesla Roadster unveiled way back in 2017 is conspicuously absent from showrooms, and the Tesla Semi truck that debuted before then has not gone into mass production.

MORE: Tesla cuts price of new Model Y

US President Donald Trump and Tesla CEO Elon Musk. Photo: Mandel NGAN / AFP

The Cybertruck looks set to go down in history as an eye-catching stainless steel curio as a twin to the similarly finished DeLorean DMC-12, rather than a machine that revolutionised the pick-up class.

And the self-driving cars frequently touted by Musk as being perpetually around the corner are, well, just around the corner.

Elon Musk listens as US President Donald Trump speaks in the Oval Office. Photo: Jim WATSON / AFP

But Tesla really has led the automotive world in implementing advanced driver assistance systems such as its “Autopilot” suite.

Would you bet against Tesla beating famously conservative rivals such as Toyota, Volkswagen, Ford or Mercedes to market with mass-produced autonomous cars?

I wouldn’t.

In much of the world, Tesla has the most impressive EV charging network, and it isn’t afraid to charge people to use it.

Yes, Chinese rivals promise to build better infrastructure. But Tesla has an enormous head start.

Like the robo-taxis, that will be a significant income stream for years to come.

And the “Powerwall” batteries that represent an enormous opportunity for Tesla to cash in on people who want to reduce their reliance on the energy grid.

It’s easy to get swept up in the negative headlines, to shudder at firebombings of dealerships and wince at Musk’s inauguration “salute”.

Firefighters working to put out a fire at a Tesla dealership, in which 17 cars were destroyed or seriously damaged, in Torrenova, on the outskirts of Rome. Photo: Vigili del Fuoco / AFP

It’s easy to marvel at the brand’s share price halving from almost $490 USD in December to about $240 now.

And it’s easy to forget most carmakers have weathered storms like this.

In the US, Ford survived high-profile failures including Ford Pinto cars with fuel tanks that ruptured when rear-ended, and Ford Explorer four-wheel-drives with tyres that would explode, causing deadly rollovers.

MORE: China’s rapid-charging is bad news for Tesla

General Motors had faulty ignition switches that would disable a car’s steering and brakes with deadly effect. Toyota had “unintended acceleration” trouble caused by bad floor mats and throttle pedals.

Volkswagen had major dramas with dual-clutch automatic transmissions, and then the “dieselgate” crisis that changed the automotive world forever.

Activists descend on the Tesla Sydney headquarters in Alexandria on Friday night to stage an anti-Elon Musk protest, joining protests around the world against the billionaire and his involvement in the Trump administration. Picture: Elizabeth Pike

Those brands survived enormous challenges.

As will Tesla.

I recently met Ford executive chairman Bill Ford at the blue oval’s Australian 100th anniversary celebrations.

When asked how the family business was handling myriad issues including President Trump’s volatile approach to tariffs, Ford said the manufacturer had dealt with myriad crises including world wars, and would find its way forward.

Musk knows what to do.

Members of the climate protest group, Extinction Rebellion, spray paint anti-DOGE messages on the outside of a Tesla showroom in New York City. Picture: Stephanie Keith/Getty Images/AFP

He is already correcting course by reducing his involvement in the controversial Department of Government Efficiency.

Don’t be surprised if Musk puts distance between himself and Trump in the short term.

Don’t be surprised to see Musk put more time into Tesla.

And don’t be surprised to see Tesla rebound to shore up its position as a top automotive brand.

Originally published as Comment: Why Tesla, Elon Musk will bounce back from the brink