I think it's neither. We already buy stuff from mass murderers, and nobody gives a sh*t.
There are simply better cars out there, the competition caught up. As Elon said many times, building an EV is much easier than building an ICE, because the engine is key to an ICE and it's the most difficult piece, while the battery pack is for the EV.
The rest nowadays is just assembling 3rd party components in a "design" that makes sense. Tesla killed it on own manufacturing, which saved them from the pandemic and post pandemic supply chain disruptions, but the advantage is no longer so visible.
Also, Tesla focused probably too much on the CyberTruck, stealing time from cars that actually make sense, instead of releasing the Model 2. And no other manufacturer is so focused on FSD, robotaxi, etc.
Ah and no other manufacturer has the distraction of sending robots to Mars, but that's another story.