Elon Musk: What to know about backlash against Tesla

Tesla is facing increasing backlash as protests, vandalism, and declining stock prices follow Elon Musk’s deepening involvement with right-wing politics and the Trump administration. Once a leading name in the electric vehicle market, Tesla is now seeing dealership attacks and owners distancing themselves from the brand.

Over the years, Tesla grew from an industry disruptor to the top-selling electric vehicle brand in the United States. However, recent events have led to a shift in public perception. Discontent began building when Musk acquired Twitter, now known as X, in 2022. 

It escalated further after he endorsed Donald Trump in the 2024 presidential election and contributed over a quarter of a billion dollars to his campaign. The tipping point for many came in January when Musk made “a gesture that resembled a fascist salute” during a rally celebrating Trump’s inauguration. With Trump back in office, Musk has used his influence to implement “sweeping cuts to federal agencies and fire government workers,” intensifying public frustration.

Tesla Dealerships Targeted in Attacks

In at least seven locations across the US, Tesla facilities have been vandalized. Some dealerships have had their windows smashed, shots fired at buildings, and charging stations set on fire. While no serious injuries have been reported, the incidents have prompted Attorney General Pam Bondi to describe them as “acts of domestic terrorism directed at Mr. Musk,” a sentiment echoed by Trump. Bondi noted that those charged could face “sentences of at least five years in prison,” though specific charges were not disclosed.

Beyond vandalism, protests have erupted, urging Tesla owners to sell their vehicles and stocks. In one demonstration outside a Tesla showroom in Manhattan, several hundred people gathered, chanting, “Nobody voted for Elon Musk.”

Owners Selling Their Teslas

Many Tesla owners in the U.S. and abroad have chosen to sell their vehicles, citing Musk’s political stance. Some also reported facing harassment for driving Teslas. Senator Mark Kelly of Arizona announced his decision to part with his Tesla in a post on X, stating, “I bought a Tesla because it was fast like a rocket ship. But now every time I drive it, I feel like a rolling billboard for a man dismantling our government and hurting people. So Tesla, you’re fired!” Kelly later confirmed that he had replaced his Tesla with a Chevrolet Tahoe.

Stock Prices Drops

Investor confidence in Tesla has declined sharply as concerns grow over Musk’s political involvement and its impact on the brand’s public perception. Since the start of Trump’s second term, Tesla’s share price has dropped 47%, far exceeding the S&P 500 index’s 7% decline over the same period. Sales have also suffered, with U.S. Tesla sales falling by “5.6 percent last year, to about 634,000 cars,” according to Kelley Blue Book. This marked the first annual sales decline in Tesla’s history.

The ongoing controversy surrounding Musk’s political activities continues to shape Tesla’s future, as protests, investor concerns, and consumer backlash take their toll on the company.

(New York Times)