Over its 20-plus years in existence, Tesla had redefined people's view of electric cars, with its Model Y being the first electric vehicle (EV) to take the top spot as the number one selling car model globally. But by 2025, some cracks had begun to show. This case examines Tesla's history and business model and discusses the challenges it faced in 2025, including declining vehicle sales, PR issues related to its self-driving technology, and controversies surrounding its CEO Elon Musk. It asks whether Tesla could sustain its leadership in electric vehicles amid increasing global competition, including from Chinese companies like BYD and legacy automakers with formidable EV and hybrid models, like BMW, Volkswagen, Ford, and Toyota-or whether Tesla's future lay beyond automobiles altogether as it shifted its focus to robotics and AI.