Tesla Brand Tarnished by Musk's Controversial Role in Trump Administration

Elon Musk's involvement in the Trump administration has sparked widespread protests targeting Tesla dealerships across the globe. Coordinated by groups like Anonymous on Bluesky, demonstrators have raised concerns about Musk's alleged role in government layoffs, funding of extremist groups, and negative impact on democracy.

Recent surveys indicate a decline in Musk's popularity among voters and EV drivers. A Quinnipiac poll shows a 53% disapproval rating for his role in the administration, while an American EV Jobs Alliance survey reveals a 35% positive rating among EV drivers.

Musk's controversial stance has damaged Tesla's brand image, according to industry experts. A survey of potential EV buyers showed Tesla with the lowest favorable rating (63%) and highest unfavorable rating (37%) among Ford, Toyota, and VW.

Tesla is also facing challenges due to potential cuts in federal EV tax credits under the Trump administration. Loss of tax credits would intensify competition with foreign automakers and impact EV sales overall.

Even within Tesla, there are concerns about Musk's impact on the brand. A leaked recording from a staff meeting suggests that senior managers believe the company would benefit from Musk's resignation.

Declining sales in Germany, France, Norway, and the UK further underscore the impact of Musk's political activities on Tesla's performance. Oppenheimer analyst Colin Rusch warns that Musk's involvement in politics could hinder Tesla's sell-through, particularly in regions like California and the EU.

With Tesla's official delivery report for the first quarter expected in April, the damage to Musk's and Tesla's brand image is already being felt in key markets.