Airbnb has had to navigate a lot of local politics—the firm even sued its own hometown after S.F. passed stricter home-sharing regulations.

The company has ruffled feathers in many cities, and startup political strategist Bradley Tusk (pictured) questions whether Airbnb can recover from its missteps.

Bradley says Airbnb has made two huge mistakes—one, it didn’t take regulations seriously enough; and two, once it realized it was facing stiff opposition it took action far too slowly, Business Insider reports. The company's biggest hurdles are in S.F. and NYC, as both cities' lawmakers are putting up tougher home-sharing regulations, New York voting to fine people who rent their apartment for less than 30 days.

Tusk says Airbnb has two options, it can continue to operate in a legal gray area and risk huge fines, or it can trim its listings to only include those that are 100% legal. Either way, it's not good news for Airbnb's profits. [BI]