Elon Musk, CEO of Tesla, faces a growing wave of rejection that could affect the company’s performance at a key moment for the industry of the electric vehicles. During the weekend, hundreds of protesters congregated in front of the company’s dealers in the United States and other countries, demanding the boycott for the brand and the sale of their shares.
Since the management of Donald Trump began, of which Musk is part, Tesla’s shares fell from US $ 420 au $ 360. Therefore, those who have invested through Cedears also suffered losses. The paper cut more than 15% in dollars.
The protests, organized by groups such as Anonymous in Bluesky, were baptized as “Tesla Takedown” and “Tesla Takeover”. In cities like New York, Boston and Austin, Texas, the protesters carried posters with phrases like “Musk is stealing you” and “Tesla finances fascists.”
Elon Musk and his role in the Donald Trump administration
The discontent against Musk is due, in large part, to his role within the government of Donald Trump as head of the Government Efficiency Department (Doge). Since his arrival, the tycoon has promoted mass dismissals in the public sector, which has generated demands and complaints for irregularities in the process.
According to a survey from the University of Quinnipiac held in January, 53% of voters reject their participation in the Trump administration, while only 39% approves it. Another study by the American Ev Jobs Alliance revealed that 42% of electric car drivers have a negative opinion on Musk, compared to 35% that sees it positively.
The impact on Tesla
Musk’s political turn is affecting Tesla’s perception as a brand. A recent survey positioned the automaker with the worst image among electric vehicle manufacturers, with 63% of favorable opinions, below Ford, Toyota and Volkswagen.
The moment could not be worse for Tesla. The Trump administration could eliminate federal tax credits for electric cars, which would force the company to compete without incentives against foreign manufacturers. This could reduce the demand of their vehicles and directly affect their income.
Sales fall
The impact of the image crisis is already reflected in Tesla sales on key markets. In Germany, the registrations of new vehicles fell 60% in January compared to the same month of 2024, while in France they dropped 63%, in Norway 38% and in the United Kingdom 12%. This trend adds to a sustained contraction of sales in China and the European Union since 2023.
According to Colin Rusch, an Oppenheimer analyst, Musk’s incursion into politics could continue to weaken Tesla’s sales, especially in regions such as California and Europe, where the company has lost market share in a constant way.
With the delivery report of the first quarter scheduled for April, investors are attentive to the real impact of the controversy on the financial results of Tesla. Meanwhile, the image of Musk as the leader of the company continues to generate divisions and putting the future of the automaker at risk.
Source: Ambito
I’m a recent graduate of the University of Missouri with a degree in journalism. I started working as a news reporter for 24 Hours World about two years ago, and I’ve been writing articles ever since. My main focus is automotive news, but I’ve also written about politics, lifestyle, and entertainment.
