Elon Musk’s First Month in Politics and Its Impact on Tesla
- Age: 53 (born June 28, 1971)
- Height: 6'1" (185 cm)
- Business: Tesla, SpaceX, xAI, Neuralink, The Boring Company, X (Twitter), PayPal (co-founder, sold)
- Spouse: Previously married to Justine Musk, Talulah Riley (twice); past partners include Grimes, Shivon Zilis
- Net Worth: ~$200 billion (2025 estimate)
- Political Involvement: Head of U.S. Department of Government Efficiency (DOGE) under President Trump, advocating deregulation and spending cuts
Elon Musk’s Political Debut Shakes Tesla’s Market Position
Elon Musk’s first full month in the White House has had a dramatic impact on Tesla’s stock and public perception. Since joining President Donald Trump’s administration as head of the Department of Government Efficiency (DOGE), Musk has been at the center of sweeping federal workforce cuts, regulatory rollbacks, and policy changes. However, his increasing political involvement appears to be causing significant turmoil for Tesla.
In February, Tesla’s stock plunged 28%, marking its steepest decline since December 2022. The downward spiral continued into March, with an additional 3% drop, bringing Tesla’s market cap to $915 billion. The decline comes amid concerns about Tesla’s falling revenue, increased competition, and Musk’s controversial political moves.
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Tesla’s Financial Struggles Intensify
Tesla’s latest Q4 earnings report revealed an 8% drop in automotive revenue and a 23% decline in operating income, largely attributed to price reductions across its vehicle lineup. Additionally, new tariffs on Canadian and Mexican imports, implemented by Trump, threaten to disrupt Tesla’s supply chain and increase production costs.
Musk has continued to assure investors that Tesla has a bright future, recently claiming on social media that a “1000% gain for Tesla in 5 years is possible” with “outstanding execution.” Despite this optimism, financial analysts remain skeptical, pointing to Tesla’s declining global market share and increasing competition from Chinese automakers.
Political Controversy Fuels Backlash Against Tesla
Musk’s deepening political ties have sparked backlash across the U.S. and Europe. His endorsement of Germany’s far-right AfD party, inflammatory remarks about Ukraine, and efforts to consolidate government agencies under DOGE have led to a surge in anti-Tesla sentiment.
- In Germany, Tesla vehicle registrations plummeted by 60% in January compared to the previous year.
- In France, suspected arsonists torched dozens of Tesla cars in protest.
- In New York, protests erupted outside Tesla dealerships, resulting in multiple arrests.
- In the U.S., Cybertruck owners reported facing harassment and public backlash.
Adding to Tesla’s troubles, an online movement known as Tesla Takedown has encouraged consumers to boycott Tesla and divest from Musk’s companies. Prominent figures, including actor George Takei, have voiced support for the movement, amplifying the controversy.
Related: Billionaire Puppeteers: How Elon Musk is gaining control over Global Politics
Tesla Faces Growing Competition in EV and AI Markets
While Musk continues to promote Tesla’s advancements in autonomous driving and robotics, the company faces stiff competition from both Chinese automakers and U.S. rivals. Several companies have already launched fully autonomous robotaxi services, while Tesla’s CyberCab remains in development. Additionally, many Chinese manufacturers now offer self-driving capabilities at a lower cost than Tesla’s Full Self-Driving (FSD) package.
Despite these challenges, Musk remains confident, stating that Tesla plans to launch unsupervised FSD in Austin, Texas, by June, with expansion to other U.S. cities shortly after. Whether these advancements will be enough to reverse Tesla’s stock decline and repair its reputation remains uncertain.
Conclusion
Elon Musk’s first month in politics has created significant turbulence for Tesla, leading to one of its worst market performances in years. As controversy around Musk’s political activities continues to grow, Tesla must navigate a challenging landscape of declining revenue, increased global competition, and mounting consumer backlash. Whether Tesla can recover from this crisis—or if Musk’s political ambitions will continue to overshadow his business empire—remains to be seen.
