Demonstrations have erupted across the U.S. in response to Elon Musk’s links to Donald Trump. Protesters gathered outside Tesla dealerships in several cities, voicing concerns over the carmaker’s reputation and the potential impact on its sales.
Widespread Protests Over Musk’s Government Role
On Saturday, groups of demonstrators assembled outside Tesla showrooms in cities such as New York, Seattle, and Kansas City, along with multiple locations in California. Organizers reported protests in dozens of cities, with some drawing crowds of up to 100 people.
The protesters expressed frustration over Musk’s role in the U.S. government’s controversial “Department of Government Efficiency,” also known as Doge. This department, led by Musk under President Trump’s administration, has faced backlash for dismantling government agencies and laying off federal workers. Some legal experts argue that these actions may be unconstitutional.
Many demonstrators carried signs condemning Musk’s involvement, with some comparing Trump’s administration to authoritarian regimes—a claim Musk has strongly denied. Others criticized his financial support of Trump’s re-election campaign. Musk’s $200 million contribution raised concerns among Tesla investors, especially in liberal-leaning states like California, where many Tesla buyers reside.
Tesla Customers React to Musk’s Political Ties
The backlash has led some Tesla owners to part ways with the brand. Musician Sheryl Crow posted a video on Instagram showing her Tesla being towed away, explaining that she had sold the car and donated the proceeds to National Public Radio (NPR). She wrote, “There comes a time when you have to decide who you align with. So long, Tesla.”
Tesla has maintained that it operates independently of Musk’s political activities. However, critics argue that his growing association with Trump and right-wing politics could drive away environmentally conscious consumers. Many of Tesla’s early customers were progressive buyers who supported the company’s mission of promoting clean energy. Some fear that Musk’s political stance could alienate these customers, affecting Tesla’s sales.
Musk’s involvement in politics is not new. In recent years, he has become increasingly vocal about his views, including opposition to certain government regulations and support for controversial figures. His social media activity has fueled tensions, further polarizing Tesla’s customer base.
Declining Sales and International Backlash
Tesla recently reported its first annual decline in vehicle deliveries in 2024. While multiple factors contributed to the drop, including increased competition and supply chain issues, analysts suggest that Musk’s political affiliations may have played a role in alienating some customers.
The backlash is not limited to the U.S. In Germany, Tesla’s sales plummeted by 60% in January following Musk’s endorsement of the far-right Alternative für Deutschland (AfD) party in December. While short-term delivery schedules can influence sales fluctuations, the sharp decline has raised concerns about Tesla’s reputation in international markets.
In the UK, Tesla has also faced scrutiny. Liberal Democrat leader Ed Davey called for the Labour government to impose tariffs on Tesla cars in response to Trump’s steel import levies. Political tensions between the U.S. and European nations have added further uncertainty to Tesla’s global market performance.
Future Risks for Tesla
Despite the controversy, some believe Tesla could attract new conservative buyers who align with Musk’s politics. However, others argue that shifting Tesla’s brand identity could alienate its existing customer base, leading to long-term financial consequences.
Shares in Tesla account for about a third of Musk’s net worth, with the rest tied to his stakes in SpaceX, Neuralink, and other ventures. He has also used Tesla and SpaceX shares to secure personal loans worth billions of dollars. Investors worry that continued political controversy could damage Tesla’s stock value and overall market position.
Tesla has not issued an official statement regarding the protests. As the political divide grows, the company faces mounting pressure to distance itself from Musk’s political activities to protect its brand and market position.
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