Protests against Tesla (NASDAQ:TSLA) are heating up as demonstrators take to showrooms across the U.S. and Europe, targeting Elon Musk’s role in the Trump administration’s deep government cuts. The movement, branded “Tesla Takedown,” is urging consumers to dump their Teslas and sell off stock, framing Musk as a key enabler of sweeping federal layoffs. Tensions are spilling over, with reports of vandalized Tesla vehicles and arrests outside dealerships. Despite the backlash, Musk remains unfazed, doubling down on his efforts to restructure the federal government while juggling leadership at Tesla, SpaceX, and X.
The political storm is hitting Tesla’s stock hard. Shares have dropped nearly 30% since Trump’s return to office, with the company’s market cap slipping below $1 trillion. A steep 45% plunge in European sales last month isn’t helping, raising fresh concerns about demand for Tesla’s EVs. Investors are now asking whether Musk’s Washington entanglements could become a long-term drag on Tesla’s valuation. With nearly 100,000 federal workers already let go or taking buyouts, the chaos in government agencies is spilling into public markets, leaving investors wary of what’s next.
But Musk and the White House aren’t backing down. The administration is pushing forward with its plan to slash up to $2 trillion from the federal budget by 2026, arguing it will streamline operations and make government more efficient. Critics see it differently, calling it an unchecked power grab that prioritizes corporate interests while gutting essential services. Either way, Tesla investors are caught in the crossfire, weighing the risks of Musk’s deepening political ties against the company’s long-term growth in a volatile EV market.
This article first appeared on GuruFocus.
