It was probably the most obvious indication that Tesla CEO Elon Musk’s political manipulation backfired. On Tuesday, US President Donald Trump stood alongside the tech billionaire and the red Tesla model outside the White House, declaring that his staff were using and buying electric cars to pay the full price.
Trump’s unprecedented support for the electric vehicle (EV) giant comes after months of criticism of its serious involvement in both US and foreign politics, including support for far-right parties in Europe, and wiped out Tesla’s stock after billions of dollars.
Musk’s request for public support from the president suggests protests, boycotts of consumers, and even jamming attacks on Tesla vehicles, charging stations and production plants scared the world’s wealthiest man and Tesla investors. Trump has condemned the incidents as cases of “domestic terrorism.”
Will politics be criticized for falling Tesla sales?
Tesla’s plunge sales added pressure. In Germany, Tesla registration fell 76% in February compared to the previous year as Musk used social media platform X to support the German (AFD) party’s far-right alternative ahead of last month’s national elections. Overall EV registration in Germany skyrocketed by nearly a third over the same period.
Similar trends have emerged elsewhere. In France, Tesla’s sales fell 45% in the first two months of the year, while Australia’s sales fell by more than a third in four months after Trump’s re-election.
According to the California New Car Dealers Association (CNCDA), Tesla sales fell for the fifth consecutive quarter in the US in the US in EVS, the largest U.S. market. In 2024, Golden State Tesla registrations fell by 11.6%.
Consumers appear to be eschewing the mask’s EV brand amid accusations of political interference and an overly wise relationship with Trump. Many Tesla owners have put stickers on the EV in opposition to Musk’s shift to the right, with the slogans “Vintage Tesla – Premadness Edition” and “Eron bought this car before he lost his mind.”
“Musk believes he can say anything he wants and doesn’t think Tesla will suffer from any outcome,” Morningstar analyst Seth Goldstein told The Associated Press last week. “Tesla was in the sweet spot. Now there’s competition.”
A recent Strategic Vision Survey asked Americans to name their favorite vehicles, with both Republican and Democrat voters choosing the EV over the burning engine model, but neither chose the Tesla.
Daniel A. Crane, a law professor at the University of Michigan and author of upcoming books on Tesla, noted until recently that the automaker was “heavyly identified.” Environmentalists’ concerns include “and Tesla drivers were “politically influenced.”
“In the last two years, Musk has burned the bridges quite a bit in those constituencies. And considering that it has arrived in the market for many other EVs (startups like Libian and clear car makers), anyone who wants to drive an EV for climate reasons doesn’t need to buy a Tesla anymore,” Crane told DW.
Crane said that while Musk might think Tesla could instead target Trump supporters on the right, “Maga people tend to be the most EV skeptical.”
The date “Teflon Elon” Monicker numbered
The fierce rivalry between EV makers has led to a major sale of Tesla stock. Over the past three months, the shares of the Mask automaker have almost halved. Musk’s net worth fell by $144 billion (13.2 billion euros) over the same period amid skepticism of Tesla’s promise to provide autonomous driving (AI) that utilizes artificial intelligence.
The company’s valuation peaked at over $1.5 trillion after the US presidential election, but on Monday alone Tesla’s shares fell 15%..
Musk supported the $250 million Trump campaign and later became his top adviser to reduce government waste through government efficiency (DOGE).
His involvement prompted daily reports of reduced public sector spending, which was welcomed by many American voters but was criticized by activists, academics and lawmakers for lack of proper oversight.
Rising outrage over Musk’s role in Doge
Tesla Takedown’s protests recently exploded at dealers across the US over Musk’s role in Doge.
Don Moynihan, a professor at the University of Michigan’s Department of Public Policy, told Reuters last month.
Moynihan said access to mask’s sensitive government data without proper surveillance was “concern” and “unprecedented.”
Musk’s other belongings are still growing
Like Tesla, Musk owns Space X, the first private space company. His other ventures include NeuralInk, which develops an interface embedded in the brain. Xai has created AI chatbot Grok and social media platform X. He also has ambitions to colonize Mars.
Unlike Tesla, these companies are not listed publicly, but they may still be traded by secondary market investors. Bloomberg said on Wednesday that Tesla’s value plummeted, but the group Musk’s four private companies’ ratings have increased by 45% since the election, citing an analysis from trading platform Caplight. Xai’s stock has risen 110% since November 5th.
Among them, the mask companies have contracts worth $18 billion to $22 billion with the federal government, but these figures are not a big picture because many deals are categorized.
According to the New York Times, the fact that these contracts and the mask companies have been investigated or fined more than 30 times by 11 U.S. government agencies raises alarms about possible conflicts of interest with their involvement with DOGE.
Even before he became Trump’s close adviser, investors also questioned whether Musk had spread himself too thinly.
Is mask time at Tesla’s helm?
Last month, New York City Director Bradlander oversaw a pension fund for employees that owns $1.25 billion worth of Tesla stock, and told the New York Times that Musk will step down as Tesla CEO but remains on the board. This will bring EV makers back to “a basic model of American shareholder governance,” he said.
Musk has publicly said his involvement with Doge is likely to continue for more years, but one of the Wall Street investors, one of the most bullish investors in Telsa, is Dan Ives believes he should stop committing to the Trump administration.
“The watch hits midnight for Musk and Doge… he needs to wear a hat as Tesla CEO.” Global Technical Research Director at Wedbush Securities; I told DW. “Balance is important, and that’s what the mask needs to stop bleeding from Tesla strains. ”
A poll by US investment bank Morgan Stanley released Wednesday found that 85% of investors believe the mask’s transition to politics had a “negative” or “extremely negative” effect on Tesla’s business.
Musk himself admitted he struggled to juggle many of his commitments and told Fox Business on Monday he was running his business “very difficult.”
Nevertheless, he appeared to double his support for Trump’s presidency. The New York Times reported Wednesday that Musk is further financially boosting Trump’s political operations worth $100 million, citing several people familiar with the plan.
The newspaper said the donation was an “unprecedented” move by White House staff.
While taking photos alongside Trump, Musk told reporters Tuesday that he will remain in Washington as long as he is useful, but he will remain as Tesla’s CEO.
Editor: Uwe Hessler
