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Tesla Faces Mounting Challenges as Stock Declines and Protests Escalate

Elon Musk's political role under the Trump administration continues to alienate customers and spark investor concerns over Tesla's governance and future.

Elon Musk, the CEO of Tesla (left) stands alongside President Donald Trump.
Elon Musk looks on during a Cabinet Meeting in the Cabinet Room of the White House March 24, 2025 in Washington, DC. (Photo by Brendan Smialowski / AFP)
Low-angle view of the facade of Tesla Motors dealership with logo and sign in Pleasanton, California, July 23, 2018.
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Overview

  • Tesla's stock has dropped approximately 35% since President Trump's inauguration, driven by declining sales and backlash against Elon Musk's dual leadership roles.
  • Musk's position as head of the Department of Government Efficiency (DOGE) has polarized public opinion and contributed to protests and vandalism targeting Tesla vehicles.
  • Some lawmakers, including three Democrats and one Republican, have recently purchased Tesla stock, viewing its reduced price as a potential value opportunity.
  • Critics, including investors, have called on Tesla's board to address Musk's controversial actions and their impact on the company's brand and market performance.
  • Questions persist about Tesla's reliance on government subsidies and its ability to compete in a crowded electric vehicle market without such support.