Elon Musk's Tesla is undergoing significant scrutiny as the political climate intensifies around the company, marked by President Donald Trumpe recent showcase of the Model S outside the White House on March 11, 2025. This promotional event came during troubling times for Tesla, as the company faces declining sales and rising controversies stemming from Musk's alignment with the Trump administration.
After the stock dropped 15% on March 10, following disappointing sales figures, Trump made headlines by highlighting Teslae vehicles, including his own new red Model S—an apparent attempt to boost the automaker's image among Republican constituents. “This may be the coolest thing I’ve ever seen,” remarked Senator Ted Cruz (R-Texas) about the automaker, echoing sentiments from conservative circles on social media.
Musk's increasing political entanglement has not gone unnoticed. Analysts from Oppenheimer indicated concerns about Musk's divisive role and its impact on Tesla's sales expectations for 2025. The firm stated, “We see conservative buyers as an incremental positive, but note service, infrastructure, and product fit mismatch as limiting depth of demand.” Notably, Tesla does not have stores or service centers established across many red states where conservative customers reside, exacerbated by existing laws against direct automotive sales.
Despite recent conservative endorsements following Trump's event, Tesla is still beset by protests and even violence aimed at its dealerships. This backlash stems largely from dissatisfaction among liberal consumers, some of whom have expressed their displeasure through vandalism and boycotts, dubbing the situation “Tesla Takedowns.” From throwing paint to setting Cybertrucks aflame, demonstrators have made their feelings clear, often citing Musk's controversial political stance as their motivation.
Polling data reveals the widening chasm among consumer opinions on electric vehicles, with Tesla's reputation plummeting among traditional liberal backers. A CNN poll indicated 53% of respondents had a negative view of Musk, refining this digital endorsement of Tesla down to just 35% expressing favorable opinions. Some liberal owners have slapped stickers on their Teslas, self-ironically stating they bought their vehicles “before Elon went crazy.”
Despite such tumult, there appear to be glimmers of hope for Musk and Tesla from the right. Following Musk's generous backing of Trump's political efforts—nearly $290 million directed toward the former president and other Republican candidates—72% of surveyed Republicans now see Musk as a positive EV ambassador. 64% of Trump supporters reported favorably about Tesla, especially amid Trump's vocal support. Joe Sacks, executive director of the American EV Jobs Alliance, noted the potential for Musk to help bridge political divides: “He’s uniquely positioned to really shape this debate.”
Yet, deep-rooted hesitations remain within Republican demographics when it concerns electric vehicles, with tradition-minded voters staunchly preferring larger gasoline-powered options for familial needs. Histories of conservative preferences for gas guzzlers over small, innovative rides continue to dominate buyer psychology, complicizing Musk's objective to engage them.
Analysts from JPMorgan noted the acute effects of Musk’s administration involvement, indicating projections of the lowest Tesla deliveries since before the pandemic. “We struggle to think of anything analogous,” they remarked on Tesla's dramatic devaluation amid this shifting political backdrop. Meanwhile, financial firms like Goldman Sachs and UBS have slashed their forecasts for Tesla’s future performance as sales dwindle.
Beyond everyday consumer challenges, political backdrop plays continuously against the brand. The unique intersection of business and politics means the stakes are at their highest for Musk, who may be sacrificing long-term brand identity for short-term gains among conservatives. Paul Barrett from NYU’s Stern Center commented, “Musk’s bet…may get so tainted…that they will suffer irreparable damage to their reputations.”
The clearest impact of these intensifying political allegiances continues to cast shadows on Tesla's future. A sentiment expressed by Attorney General Pam Bondi emphasized the operational hazards Tesla now faces. “If you’re going to touch a Tesla, go to a dealership… you need to watch out because we’re coming after you,” she indicated, reinforcing the notion of heightened scrutiny surrounding the brand and its relationship with Trump's administration.
While Tesla attempts to weather accusations and navigate brand reputation trauma, analysts point to the political storm as both potential benefit and hindrance for future sales as Musk aligns himself with Republican efforts. Skeptics suggest the market may not prove forgiving, though others, amid shifting party dynamics, have started considering Tesla as part of their ride to the future.
