Elon Musk’s growing influence in the Trump administration is causing widespread controversy, leading to a sharp decline in Tesla’s brand image and sparking protests across the globe. The billionaire entrepreneur, now leading the newly formed Department of Government Efficiency (DOGE), has become a lightning rod for criticism, with many blaming him for massive government layoffs and legal disputes surrounding these dismissals.
Protests Erupt Against Tesla and Musk
Over the weekend, demonstrators gathered at Tesla dealerships across the U.S. and in international locations, with movements like “Tesla Takedown” and “Tesla Takeover” gaining traction. Protesters carried signs reading, “Musk is stealing from you,” and “Tesla funds fascists,” urging Tesla owners to sell their vehicles and investors to divest from the company.
The largest demonstrations took place in major cities such as New York, Boston, and Tesla’s hometown of Austin, Texas. Protesters chanted slogans like, “Hurting Tesla is stopping Musk. Stopping Musk will help save lives and our democracy.”
Polls Show Musk’s Popularity is Declining
Recent polling data suggests that Musk’s actions within the Trump administration are damaging his public perception. A Quinnipiac poll from January revealed that 53% of voters disapprove of Musk’s prominent role in the government, with women displaying stronger opposition than men.
Another survey by the American EV Jobs Alliance showed Musk’s approval among EV drivers sitting at just 35%, with 42% expressing disapproval. Among female respondents, the divide was starker, with only 34% viewing him favorably compared to 43% unfavorably.
Mike Murphy, CEO of the American EV Jobs Alliance, emphasized that Musk’s alignment with MAGA politics has overshadowed his identity as a clean energy pioneer. “Musk has more of a MAGA identity than an electric car identity,” Murphy said. “He’s a nightmare for Tesla’s marketing team because he’s now in the way.”
Tesla’s Brand Image Takes a Hit
As Musk’s political affiliations become more pronounced, Tesla’s brand perception has taken a severe hit. A survey comparing Tesla with other EV brands, including Ford, Toyota, and Volkswagen, found Tesla to have the lowest favorability rating (63%) and the highest unfavorable score (37%).
Additionally, Tesla faces potential policy shifts that could worsen its financial outlook. The Trump administration is considering cutting federal EV tax credits, a move that could significantly impact Tesla’s sales in the U.S. Unlike competitors that offer hybrid and gas-powered vehicles, Tesla’s all-electric portfolio makes it particularly vulnerable to such policy changes.
Tesla’s Sales Plunge in Key Markets
The backlash against Musk is already translating into declining Tesla sales, especially in politically sensitive markets. January sales figures from Europe reveal a dramatic downturn:
- Germany: 1,277 new Tesla registrations, down nearly 60% from January 2024, following Musk’s outreach to the far-right AfD party.
- France: Sales fell 63% year-over-year.
- Norway: A decline of 38%.
- United Kingdom: A drop of 12%.
Similar trends are emerging in China, where Tesla’s sales have softened due to increasing regional competition and shifting consumer sentiment.
Internal Dissent at Tesla
Tesla employees are reportedly alarmed by Musk’s growing political entanglements. According to a leaked internal meeting obtained by The Washington Post, senior executives voiced concerns that Musk’s controversial actions are tarnishing Tesla’s brand and suggested that the company might be better off without him at the helm.
Wall Street Analysts Sound the Alarm
Tesla’s stock price has remained volatile amid the controversy, with Oppenheimer analyst Colin Rusch warning that Musk’s political activity could dampen Tesla’s sales performance in key markets like California and the European Union. “We see the biggest risk in CA and the broader EU, where Tesla has seen ongoing declines since the start of 2023,” Rusch noted.
As Tesla navigates this turbulent period, the company must address growing consumer concerns and repair its reputation amid Musk’s polarizing political trajectory. Whether Tesla can separate its brand from its controversial CEO remains an open question.
