By Don Terry & Mary Jones | Thursday, March 13, 2025 | 5 min read
Elon Musk’s close association with Donald Trump is proving to be a disastrous decision. Once the golden child of the electric vehicle revolution, Tesla is now caught in a downward spiral—losing market value, customers, and credibility. The stock has been in freefall, dropping 10% this week alone and marking its seventh consecutive week of losses. Since hitting a record high in December, Tesla has shed nearly half its value, driven by falling sales, geopolitical uncertainty, and a battered brand image.
Musk’s decision to align himself with Trump—going so far as to join the so-called “Department of Government Efficiency”—has backfired spectacularly. What may have seemed like a strategic move for influence has instead turned into a political liability. Many of Tesla’s core supporters—environmentally conscious, progressive, and tech-savvy consumers—now feel alienated.
The backlash is becoming more than just online outrage. Some Tesla owners report feeling hostility on the road, and many are even selling their cars in protest. Registration data in key markets like Europe suggests this sentiment is translating into real-world consequences. The perception of Tesla as an innovative, forward-thinking brand is eroding, replaced by controversy and political baggage.
Beyond the political fallout, Tesla is facing severe business headwinds. China—its largest foreign market—is cooling, with demand slowing amid growing geopolitical tensions. European sales are also slipping, compounding the company’s struggles.
On top of that, Trump’s erratic trade policies have injected further uncertainty into the auto industry. His threats of tariffs on Canada and Mexico—though later delayed—created panic among automakers, Tesla included. Analysts warn that such disruptions could pose a “significant risk” to the company, especially as it battles declining global demand.
Tesla’s Stock in Freefall
Elon Musk built his empire by shaking up industries, but his latest move is proving to be a risky bet. By aligning himself with Donald Trump, he has alienated a significant portion of Tesla’s customer base and shaken investor confidence. Once hailed as a visionary leader, Musk now faces mounting scrutiny as Tesla struggles to steady itself.
The warning signs have always been there—those who get too close to Trump often face consequences. Now, Tesla is experiencing that reality firsthand. In a headline-grabbing moment, the former president transformed the White House’s South Lawn into an unexpected Tesla showcase, displaying five electric vehicles before settling on a deep red Tesla Model S. With a starting price just under $80,000, the purchase added another twist to Trump’s unpredictable playbook.
Speaking to reporters, Trump defended Elon Musk, arguing that the billionaire—whose net worth is estimated at $320 billion—had been treated “very unfairly.” He went further, insisting, “He can’t be penalized for being a patriot.” Trump also condemned those vandalizing Teslas, labeling them “domestic terrorists.”
Yet, if keying a Tesla now qualifies as domestic terrorism in Trump’s eyes, it raises the question of where that outrage was when a violent mob stormed the U.S. Capitol—an attack that resulted in the deaths of police officers and the defacement of a symbol of American democracy.
Musk’s alignment with Trump is taking a toll on Tesla’s reputation beyond the U.S., with sales in key European markets like Germany and France taking a sharp hit.
Rival automakers aren’t missing the opportunity to capitalize on the moment. Kia Norway made waves on social media by posting a photo of its EV3 with a cheeky sticker that read, “I bought this after Elon went crazy.” The jab quickly caught attention, highlighting the growing backlash Tesla is facing.
The Tesla spotlight came at a tough time for the company. On Monday, its stock took a staggering 15% hit, plunging to its lowest levels since Trump’s victory over then-Vice President Kamala Harris in November. It was Tesla’s worst trading day since 2020 and made it the biggest loser in the S&P 500.
The numbers tell the story. From its peak, the stock has cratered by 53%—and it’s still sliding. Investors who once watched Tesla defy market gravity are now seeing reality set in.
Meanwhile, Musk’s other ventures are under siege. His social media platform, X (formerly Twitter), is facing what he calls a “massive cyberattack.” He described it as an unusually large and well-coordinated assault, hinting at the involvement of either a major hacking group or even a nation-state.
And it’s not just the digital world where Musk’s empire is under fire—literally. In Seattle, four Tesla Cybertrucks were reportedly set ablaze. Protests against the company are growing worldwide, and a Tesla lot was allegedly targeted in another incident. A journalist covering the scene was even reportedly threatened with a knife.
For years, Tesla seemed unstoppable, riding a wave of innovation and market dominance. But now, as the company grapples with a sharp downturn, political entanglements, and growing public criticism, the cracks are beginning to show. Once a symbol of the future, Tesla is now in full damage control.
In a move that raised eyebrows, former President Donald Trump transformed the South Lawn of the White House into an impromptu Tesla showroom on Tuesday—an unusual gesture of support for his close ally, Elon Musk. Five Tesla vehicles were delivered and prominently displayed on the White House driveway for Trump’s personal inspection. Just hours earlier, Trump had announced on Truth Social that he intended to purchase a Tesla himself, framing it as a show of solidarity with Musk and the struggling automaker. The once-untouchable brand is now in damage control mode.
Musk should have seen it coming—history has shown that everything Trump touches eventually collapses. Now, Tesla is experiencing that hard truth firsthand.
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