CEO Elon Musk’s deepening involvement in politics was once seen as a potential advantage for Tesla (TSLA), but the tide has turned against the electric vehicle (EV) king. Tesla’s stock has taken a 38% beating so far in 2025, weighed down by sluggish international sales, intensifying competition, and a wave of public outrage over Musk’s high-profile role in President Donald Trump’s newly established Department of Government Efficiency (DOGE).
Earlier this month, protests erupted outside Tesla stores across the U.S., amplifying concerns that Musk’s political entanglements are doing more harm than good. However, Trump threw his full support behind Musk, vowing to buy a Tesla to stand against the backlash. On March 11, Trump bought a red Tesla Model S, handpicking it from a lineup outside the White House.
