Elon Musk, the CEO of Tesla, is yet again in hot water over his controversial practices and statements. This came after he had spoken at a rally celebrating Donald Trump’s inauguration in January 2025. At the same time, Musk was hitting the headlines for twice giving a Nazi salute while speaking to the audience. This surprising move raised a universal outcry and sparked large – perhaps historic – protests against Tesla.
In reaction to these changes, massive “Tesla Takedown” protests were unleashed. Activists led these protests to tarnish the automaker’s image and undermine Musk’s financial position. Protesters picketed outside Tesla’s showrooms, dealerships, and charging stations in an attempt to get their rage toward clean transportation heard. The protests have gained momentum, with thousands of participants joining demonstrations across various cities in March 2025.
The political landscape is dramatically changing how Tesla is perceived. In response, Musk has pledged to cut back on his DOGE-related activities while still remaining tangentially connected to the meme coin. Now investors and analysts are bringing even more pressure to bear. They’re begging him to stop the distraction and return to focusing on Tesla’s original mission.
Impact of Political Activities on Tesla
Musk has made Tesla a powerful force in the global electric vehicle innovation race. In recent months, his new political activities have made the company a kind of “symbolic pariah” for many consumers. The backlash has slammed Tesla’s sales in Europe, with overall sales down year-over-year by 81% in Sweden. As a result, Tesla sales in all of Europe plummeted by 37.2% over the first four months of 2025.
Dan Ives, one of Tesla’s prominent supporters on Wall Street, expressed his concerns about Musk’s focus on politics detracting from the company’s performance.
“If you agree or disagree with DOGE it misses the point that by Musk spending 110% of his time with DOGE (and not as Tesla CEO) since President Trump got back into the White House this has essentially turned Tesla into a political symbol … and this is a bad thing,” – Dan Ives
Despite all of these troubles, Musk is bullish on the future of Tesla. He instructed employees to focus on first getting the Cybercab developed. He has repeatedly claimed that Tesla will crank out some 5,000 Optimus robots by 2025. He is convinced that these innovations will turn into the most valuable jewels of the company, as it sails through stormy seas.
Protests and Public Sentiment
The “Tesla Takedown” protests signal a growing urgency behind anger with Musk’s political alignments. Few, if any, think these relationships are responsible for Tesla’s black eye of a public reputation. Thousands joined the demonstrations in order to draw attention to what they see as injustices caused by Musk’s behavior and the company’s loss of moral and ethical standing.
Donald Trump’s reaction to the protests was incredibly alarming. He announced that he would consider any violence against Tesla domestic terrorism. Vice Chairman Alvaro Bedoya His remarks indicated a troubling willingness to shield Musk and the company from accountability for actions he characterized as “sick terrorist thugs.”
“I look forward to watching the sick terrorist thugs get 20-year jail sentences for what they are doing to Elon Musk and Tesla. Perhaps they could serve them in the prisons of El Salvador, which have become so recently famous for such lovely conditions!” – Trump
Despite Trump’s support, many analysts believe that the damage to Tesla’s reputation may be long-lasting. As Sean Tucker, a former industry expert, said, “Tesla has an enormous PR problem to deal with right now. This is an unprecedented and inflectional moment in the auto industry.”
“They have a certain significant public image problem that’s really something we haven’t seen before in this industry,” – Sean Tucker
Declining Sales and Market Competitiveness
The consequences of Musk’s political adventures have clearly shown up in abysmal sales numbers for Tesla. In the first quarter of 2025, the Tesla-legacy automaker delivered only 336,681 vehicles. That’s a big plunge from 495,570 deliveries in Q4 2024 and down from 386,810 deliveries for the same time last year. In the German market, a recent survey just found that 94% of respondents would never even think about buying a Tesla. Sales data backs that up with a shocking 42.5% decline in March alone.
Filling out the triple threat are the other car manufacturers–somebody forgot to tell them that Tesla is dead. One competitor that focuses on the commercial market has only recently released all-electric models. These vehicles can be 100% charged in just five minutes, providing the auto manufacturer a decisive competitive advantage against Tesla.
Musk remains undeterred by these setbacks. He argues that the potential value of Tesla’s fleet will grow substantially as new technologies and models are introduced.
“It’s very difficult for people in the stock market, especially those that look in the rearview mirror, which is most people, to imagine a future where suddenly a 10 million vehicle fleet has five to 10 times the usefulness,” – Elon Musk
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