Market Analysis

Tesla Faces Protests and Falling Popularity as Musk’s Political Ties Take a Toll

Amos Simanungkalit · 19 Feb45.2K Views

Image Credit: Yahoo!Finance

Elon Musk’s controversial involvement in the Trump administration is increasingly tarnishing both his personal image and Tesla’s brand, especially at a crucial moment for the electric vehicle (EV) industry.

Protests, coordinated by groups like Anonymous on Bluesky, have erupted at Tesla dealerships across the US and internationally. Events dubbed “Tesla Takedown” and “Tesla Takeover” saw demonstrators holding signs such as "Musk is stealing from you" and "Stop Musk's Coup." Protesters gathered in various cities, including New York, Boston, and Tesla’s hometown of Austin, Texas, calling for action against Musk’s leadership. Organizers urged the public to "sell your Teslas, dump your stock," claiming that hurting Tesla would help "stop Musk" and "save lives and our democracy."

Musk’s controversial role as head of the Department of Government Efficiency (DOGE) has included overseeing significant layoffs, many of which have led to lawsuits accusing DOGE and the White House of illegal actions. A Quinnipiac poll from January found that 53% of voters oppose Musk’s prominent position in the Trump administration, with women particularly critical.

Recent polling from the American EV Jobs Alliance, which tracks EV adoption across political lines, revealed that 42% of EV drivers hold a negative view of Musk, with only 35% rating him positively. His standing among women is even worse, with 43% unfavorable ratings compared to 34% favorable. Mike Murphy, CEO of the American EV Jobs Alliance, noted that Musk’s political identity as a "MAGA god" is hurting Tesla’s brand, which once saw him as an “EV Jesus.” This shift has complicated Tesla’s marketing strategy, as Musk’s public image now overshadows his role as an electric vehicle innovator.

Tesla’s reputation is taking a hit among potential buyers, with a recent survey showing the company’s favorable rating (63%) is the lowest among major EV competitors, including Ford, Toyota, and VW. Tesla’s declining popularity comes at a time when federal EV tax credits may be reduced under the Trump administration, putting the company in direct competition with foreign automakers and potentially lowering overall EV sales.

Even within Tesla, employees are concerned about Musk’s impact on the company’s brand. A recording of a Tesla staff meeting obtained by the Washington Post revealed that some senior managers believe the company would benefit if Musk resigned.

Tesla’s brand struggles are evident in the latest regional sales figures. In January, new Tesla registrations in Germany plummeted 60% compared to the same month in 2024, following Musk’s controversial associations with Germany’s far-right AfD party. Other European markets also saw significant declines, including France (-63%), Norway (-38%), and the UK (-12%).

Analyst Colin Rusch from Oppenheimer warned that Musk’s political actions are creating a “potential overhang” on Tesla’s sales, especially in California and the EU, where the company has seen ongoing declines since 2023. Sales in China and Europe were also weaker in January, signaling broader concerns for Tesla’s future growth.