Trump’s unprecedented support for Tesla follows months of criticism over Musk’s growing involvement in US and foreign politics, including support for far-right parties in Europe, which has led to billions of dollars in losses for Tesla’s stock.
Musk’s pursuit of the president’s public support suggests that protests, boycotts, and even sabotage attacks on Tesla’s assets have unsettled the world’s wealthiest man and spooked investors. Trump condemned these incidents as “domestic terrorism.”
Impact on Tesla Sales
Declining sales have increased the pressure on Tesla. In Germany, where the CEO endorsed a far-right party, Tesla registrations plummeted by 76% in February, compared to the previous year. Similar downturns were observed in France and Australia, signaling a broader trend against the brand.
In California, Tesla sales have fallen for the fifth consecutive quarter, with a decline of 11.6% in 2024. Consumers appear to be distancing themselves from Musk’s brand, citing concerns over political interference and a perceived cozy relationship with Trump.
“Musk thinks he can say anything he wants without consequences, but Tesla now faces significant competition,” noted analyst Seth Goldstein. “It was in a sweet spot before, but no longer.”
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