Hundreds of protests at Tesla showrooms have also weighed on the company. Under the banner of a “Tesla Takedown,” opponents of Musk and Trump’s government policies have targeted the company to try to gain leverage over Musk, and demonstrators have continued to swarm Tesla locations, especially on weekends.

Tesla CEO Elon Musk said he will push for lower tariffs as he steps back from his role in the Trump administration during Tesla's earnings call.

Musk’s radical political turn isn’t the biggest problem. Years of design and technology stagnation have led to this troubled moment for the automaker.