Tesla, the pioneering electric vehicle manufacturer, is navigating a turbulent period, marked by significant declines in sales and stock value during the first quarter of 2025. The company reported a 13% decrease in vehicle deliveries compared to the previous year and witnessed its stock value plummet by 36% in the same period. This downturn coincides directly with CEO Elon Musk’s high profile position within the second Trump administration as the head of the newly formed Department of Government Efficiency, known colloquially as DOGE.
Experts increasingly point to a direct correlation between Musk’s visible political activities and the electric car company’s recent difficulties. The first quarter of 2025 saw not only reduced sales compared to Q1 2024 but also widespread protests targeting Tesla across the United States and internationally. These demonstrations have sometimes escalated, resulting in vandalism and even arson attacks directed at Tesla vehicles, charging infrastructure, and company facilities.
Joseph Foudy, an economics professor at New York University’s Stern School of Business, believes the connection is undeniable. “Tesla is clearly facing a consumer backlash, driven by the outsized political role of its leader,” Foudy stated via email. He emphasized the unique bond between the company and its co founder, noting, “More than any other company in America, Tesla is a brand that is synonymous with its (co-)founder.”
However, Foudy also cautioned against attributing Tesla’s woes solely to politics. He acknowledged that operational challenges, such as issues with the Model Y vehicle rollout, and intensifying competition, particularly from Chinese automakers, are also contributing factors to the company’s decreased performance. Nevertheless, he stressed that “the charged political atmosphere” has “clearly affected” Tesla’s ability to sell cars.
This sentiment is echoed by Michael Tesler, a political science professor at the University of California, Irvine. Tesler highlights the polarizing nature of Musk’s current political persona. “Musk’s political brand is deeply polarizing and has provoked intense backlash against his company from the consumers most likely to buy EVs,” Tesler explained by email. He specifically referred to liberal consumers, a demographic traditionally concerned with environmental issues and therefore a core market for electric vehicles.
Recent polling data underscores the extent of this consumer alienation. A Yahoo News/YouGov poll conducted in late March 2025 found that a substantial two thirds (67%) of American adults would not consider purchasing or leasing a Tesla. Significantly, 37% of all respondents identified Elon Musk himself as either “the whole reason” or “part of the reason” for their reluctance.
The survey revealed a stark partisan divide. While 53% of Republicans and 67% of independents would not consider a Tesla, this figure surged to 82% among Democrats. The influence of Musk’s political alignment was even more pronounced: 69% of Democrats cited Musk as a factor in their decision against Tesla, compared to just 8% of Republicans and 41% of independents.
Furthermore, Musk’s personal popularity appears to be waning. Tesler pointed to a recent Economist/YouGov poll showing Musk with a net favorability rating of negative 11 points. The poll indicated that 43% of respondents hold a “very unfavorable” view of him, significantly outweighing the 26% who view him “very favorably.”
Looking ahead, the prospects for a rapid recovery for Tesla seem uncertain, according to Tesler. He believes much of the damage to the brand, particularly among its target demographic, has already occurred and may persist throughout the current political term. “Backlash and boycotts against Trump’s most visible supporter are one of the few ways for progressives to take meaningful action right now; and I don’t think that will change,” Tesler predicted.
Still, some analysts suggest a path forward for Tesla might involve Musk distancing himself from his government role. A recent, though quickly denied, report by Politico suggesting Musk might soon leave the administration briefly caused Tesla shares to rise. Both the White House and Musk refuted the report. Foudy sees potential for the brand to mend. “The brand appears significantly damaged by Musk’s recent actions, but the damage is not irreparable,” he commented. Beyond brand perception, Foudy noted shareholder anxiety about Musk’s bandwidth. “Shareholders worry Musk is stretched too thin… Given new competition in the electric car space and critical bets Musk is making in AI and robotics, many investors would love for him to step away from his work in Washington.”
Tesla finds itself at a critical juncture, battling not only fierce market competition and operational hurdles but also the significant commercial consequences of its CEO’s deep involvement in a polarizing political landscape.
