TESLA OWNERS DITCHING CARS IN PROTEST OVER ELON MUSK
Tesla owners are reportedly parting ways with their vehicles in protest at Elon Musk's involvement in President Donald Trump's administration.
Both everyday drivers and certain celebrities claim to have sold their vehicles while voicing disapproval of Musk's command of the newly established Department of Government Efficiency (DOGE) and his broader support for Trump's agenda.
Newsweek contacted Tesla outside of regular hours for comment.
Why It Matters
Tesla has had a trying few weeks, with poor European sales and increased competition from rivals such as Chinese carmaker BYD weighing heavily on its stock performance. Should Musk's political activities prompt a significant number of consumers to sell their cars or opt for other brands beside Tesla, this could spell further trouble for the industry-leading automaker.
What To Know
While recent data shows that both DOGE and the Trump administration are receiving relatively high approval ratings in the U.S., other surveys indicate that many are being persuaded to sell their cars, or dissuaded from purchasing, as a result of Musk's political involvement.
A late January poll by electric-vehicle-focused outlet Electrifying.com found that 59 percent of prospective car buyers were put off purchasing a Tesla because of the CEO. According to the 1,000-person survey, the sentiment was shared by current electric car owners, 61 percent of whom said they would be open to buying a Chinese-made alternative.
Similar responses were received from Tesla owners, according to a 26,000-person survey by Dutch current affairs show EenVandaag. Thirty-one percent of the polled Tesla drivers said they were considering selling or had already sold their car as a result of Musk's actions, with 40 percent saying that the CEO's behavior and politics had made them ashamed to drive the vehicle.
Some have also tied Tesla's recent poor sales performance in Europe to Musk's interventions in British and German politics, though others believe this may be more closely related to the company's outdated product lineup and the growing competition from other market players.
The CEO's popularity among Republicans could lead to more on the right purchasing a Tesla, potentially offsetting any Musk-related alienation. However, a 2023 Gallup poll found that this demographic is much less likely to choose an electric vehicle as their car of choice.
What People Are Saying
Singer and songwriter Sheryl Crow posted a video of herself to Instagram on Saturday, waving goodbye as a car hauler drove off with her Tesla. "My parents always said... you are who you hang out with," the caption read. "There comes a time when you have to decide who you are willing to align with. So long Tesla."
"Money donated to @npr," Crow wrote, adding that the public radio organization was "under threat by President Musk."
One former Tesla owner told British outlet The Telegraph that he would be giving up the vehicle after its lease expired as a result of Musk's political activities.
"It's a brand that, from my point of view, has become toxic," the 51-year-old said. "It would be like buying a VW Beetle in 1939 Germany."
'Tesla has played a pivotal role in accelerating the adoption of electric vehicles, but our findings show that Elon Musk's personal involvement in Tesla's brand appears to be polarizing, pushing many buyers to look elsewhere,' Electrifying.com chief executive Ginny Buckley told the This is Money website.
Canadian owner Alain Roy told GlobalNews that he was selling both of his Teslas and canceling his Cybertruck order due to Musk's involvement in the administration, and anger over Trump's actions toward Canada.
Anti-Musk Protestors have recently gathered outside Tesla showrooms across the U.S., urging those inside against purchasing a car while holding signs criticizing the CEO and chanting: "Stop the Coup."
"Musk's DOGE-related actions and more powerful alliance with Trump clearly could alienate some consumers to move away from the Tesla brand," according to Wedbush Securities analysts, in a February 12 note shared with Newsweek.
"There is some momentum around this effort in Europe and pockets of the U.S. as well since November. That said, we view these as containable brand issues for Tesla for now that are not a major cause for concern."
In response to the protests, one EV-focused X account wrote: "Activists are attempting to attack and tear down Tesla as revenge against Elon Musk. If we stand together, we can make sure they fail."
"But these attacks won't hurt Elon, and they won't scare him into staying silent," it added. "They will only hurt American workers, American manufacturing, and America's competitiveness against China in building the autonomous electric vehicles of the future."
Another X account, i like teslas, posted footage of a busy showroom, captioning this with: "My Tesla store at the mall is as packed as I've ever seen it all thanks to DOGE."
"There are also composers who make beautiful music and did bad things, that doesn't make their music any less beautiful," a Tesla driver who was not swayed by Musk's politics told EenVandaag.
What Happens Next?
Tesla's shares are down 10.2 percent over the past month, according to Yahoo Finance, closing at $355.84 on Friday. The stock has risen 76.7 percent over the past six months, however, owing to a sustained post-election uptick which lasted until mid-December.
Beyond any headwinds related to Musk or Trump, analysts predict that Tesla's biggest challenge will be maintaining a lead over growing competition from both its domestic and overseas rivals.
Do you have a story we should be covering? Do you have any questions about this article? Contact [email protected].
Related Articles
2025-02-16T16:44:10Z