Tesla Stock Plummets as Elon Musk's Politics Spark Global Backlash
Tesla Stock Plummets as Elon Musk's Politics Spark Global Backlash
Tesla, once the undisputed leader of the electric vehicle revolution, is facing an unprecedented storm, and its stock price is paying the price. At the center of this turmoil is none other than CEO Elon Musk, whose foray into politics has ignited a wave of global protests, alienating customers and investors alike.
Musk, who has never shied away from controversy, has recently intensified his involvement in political matters, aligning himself with right-wing ideologies and making decisions that have unsettled both Tesla buyers and shareholders. His role in the Trump administration's Department of Government Efficiency, which has led to mass layoffs in the public sector, has drawn widespread criticism. Protesters have taken to Tesla showrooms across the U.S., Australia, and Europe, voicing their discontent. From bumper stickers mocking Musk to activist-led ad campaigns in the UK, the backlash is no longer confined to online outrage—it’s materializing in ways that are directly impacting Tesla’s bottom line.
The consequences are stark. Tesla’s stock, which saw an astonishing 91% surge following the U.S. election in November, has now tumbled back down, wiping out those gains entirely. The decline in Tesla’s share price is not just a result of market fluctuations—it’s a reflection of Musk’s growing political entanglements and their effect on Tesla’s brand image. Investors have started to question whether Musk’s erratic behavior and polarizing political stance are becoming liabilities, with some even selling off their Tesla holdings.
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Sales figures paint a grim picture. Tesla’s numbers have plummeted across key global markets, with Australia reporting a staggering 72% decline in February. In Germany, where Musk’s political antics have been particularly contentious, Tesla sales nosedived 76% in February, following a 60% drop the previous month. Shipments from China, Tesla’s crucial production hub, also took a major hit, plunging 49% year-over-year. Even in the U.S., a market traditionally loyal to Tesla, customers are reconsidering their brand allegiance.
Meanwhile, competitors are capitalizing on Tesla’s struggles. China’s BYD, once an underdog, has now overtaken Tesla as the world’s top EV producer. European automakers, too, are ramping up their EV offerings, making it clear that Tesla can no longer rely solely on its first-mover advantage. The company is increasingly forced to slash prices to stay competitive, but this strategy has backfired, with potential buyers hesitant to invest in a car whose resale value might depreciate further.
Musk’s public persona, once a magnet for innovation and futurism, is now turning into Tesla’s greatest liability. His inflammatory social media posts, conspiracy theories, and perceived authoritarian leanings have alienated a core segment of Tesla’s customer base—progressive, environmentally conscious buyers who once saw Tesla as a symbol of the clean energy revolution. Instead, Musk’s actions have triggered a new movement: “Tesla Takedown,” a campaign urging boycotts and protests against the company, further damaging its reputation.
Even within Tesla’s leadership, confidence appears to be wavering. Chair Robyn Denholm, a longtime Tesla executive, has been offloading massive amounts of Tesla stock, selling over $117 million worth in recent months. This move, coupled with legal battles over Musk’s controversial $56 billion pay package, raises serious questions about the company’s future stability.
While Musk remains one of the richest men in the world, his net worth has suffered significantly, with a staggering $120 billion drop since Tesla’s stock peaked in December. As the protests grow louder and Tesla’s market position weakens, one thing is clear: Musk’s political gambit is costing Tesla dearly, and unless something changes, the company’s dominance in the EV space may soon be a thing of the past.
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