How Elon Musk's Political Presence is Affecting Tesla
By Anna Kaur
How Elon Musk's Political Presence is Affecting Tesla
By Anna Kaur
Tesla is quickly becoming a political symbol for Trump and DOGE.
Musk's close relationship with President Trump has afforded him considerable power within the federal government, influencing policy decisions, budget allocations, and regulatory frameworks. However, Tesla sales in the U.S. have fallen due to competition, and a country sharply divided about Trump.
On Tuesday, standing beside the tech billionaire and a red Tesla Model S outside the White House, Trump announced that he was purchasing the electric vehicle for his staff and covering the full cost. Musk’s political manipulation has backfired because Tesla stocks are plummeting. Many auto industry analysts have linked Tesla’s recent decline in stock value and vehicle sales to Musk’s backing of Trump and other far-right candidates globally. In recent days, Tesla showrooms across the U.S. have faced protests, and its vehicles have been vandalized on the streets.
In one of the biggest markets for EVs, the Golden State, Tesla sales fell for the fifth consecutive quarter, according to the California New Car Dealers Association. In 2024, Tesla registrations in California dropped by 11.6%. The latest auto sales figure from China shows that Tesla sales there have nearly halved from February a year ago. However, the decline is partially due to increased competition from domestic EV companies.
Tesla Takedown protests have erupted at dealerships across the US recently over Musk's role in DOGE. So far, DOGE has canceled around $60 billion of contracts that fund humanitarian programs around the world. DOGE's goal to cut government spending has sparked controversy. Analysts have said Musk’s shift to right-wing politics doesn’t appear to sit well with potential Tesla buyers, who are generally perceived as wealthy and progressive consumers.
Tesla isn’t the only company led by Musk facing difficulties recently. His social media platform X experienced several crashes last Monday, which Musk attributed to a "massive" cyber attack. However, much like his cuts to federal jobs, Musk reduced the staff at X, leading technology experts to warn about growing security vulnerabilities. It’s high time Musk puts on his hat as Tesla CEO and stops playing the part of an unethical, extremist leader in American politics.