Tesla Stock Drops Nearly 50% as Elon Musk Faces Backlash Over Political Role.

Musk Says His Government Role Is “A Very Expensive Job”.

Tesla CEO Elon Musk has admitted that his work with the Trump Administration's Department of Government Efficiency (DOGE) is dragging down Tesla's stock, describing his advisory position as “a very expensive job.”

Musk’s involvement with DOGE—focused on slashing federal agencies and government jobs—has triggered a wave of protests and criticism. This public backlash, combined with declining vehicle sales, has caused Tesla’s stock to plunge from a record high of $479.86 in December to roughly $259.16—a nearly 48% drop.

Elon Musk

Protests Spread Across U.S. and Europe

Over the weekend, demonstrators gathered at Tesla dealerships in states including New York, Massachusetts, Texas, and New Jersey, as well as in cities across Europe. Protesters held signs like:

• “Honk if you hate Elon”

• “Fight the billionaire broligarchy”

Some dealerships also reported vandalism as tensions escalated.

Sales and Trade-Ins Show Decline

Consumer sentiment appears to be shifting. Sales of new Teslas in Europe dropped 45% in January, while U.S. data shows a record high in Tesla trade-ins. Significantly, many of those trade-ins were not applied toward the purchase of another Tesla vehicle.

Musk: Tesla Stock Drop Could Be a “Buying Opportunity”

At a town hall event in Wisconsin, Musk addressed the crowd:

“My Tesla stock and the stock of everyone who holds Tesla has gone, went roughly in half. I mean it’s a big deal.”

He added that Tesla’s long-term performance remains promising and called the current downturn a possible “buying opportunity.”

Tesla Deliveries to Be Disclosed April 2

Tesla will announce its Q1 2025 vehicle delivery numbers on April 2. Analyst Dan Ives of Wedbush Securities predicts a 7% year-over-year decline, citing Musk’s dual role and the resulting brand strain:

“The anti-Musk and brand issues are clearly at play and a major factor in this weak 1Q delivery number,” Ives wrote.

Political Ties Raise Concerns

Musk has been a frequent presence in Washington since Trump’s 2024 election. He has also financially backed conservative candidates, including donating over $12 million to Wisconsin State Supreme Court candidate Brad Schimel. At Sunday’s rally, Musk gave $1 million each to two voters who signed a petition against "activist judges."

His growing political presence, including the sale of social platform X to xAI, has added to investor uncertainty.

What Comes Next?

Tesla’s future hinges on how Musk manages his responsibilities across business, technology, and politics. The EV giant faces not only declining sales but also growing skepticism among loyal consumers and investors.

“Long term I think Tesla stock’s going to do fine,” Musk said. “So maybe it’s a buying opportunity.”

🔎 People Also Ask (FAQ)

Why is Tesla stock down?
Tesla stock has fallen due to backlash over Elon Musk’s political role, declining global sales, and brand perception issues tied to his leadership decisions.

What is Elon Musk’s role in the government?
Musk is working with the Trump Administration as a senior adviser in the Department of Government Efficiency, pushing for budget cuts and agency shutdowns.

Are Tesla sales really dropping?
Yes. Tesla sales in Europe dropped 45% in January, and U.S. trade-ins hit a record high in March—many not for new Teslas.

Is this a good time to buy Tesla stock?
Some analysts and government officials suggest it could be a buying opportunity, though risks tied to political activity remain.

Opinion: Is Elon Musk’s Vision for Efficiency Costing Tesla Its Identity?

Elon Musk has long been hailed as a disruptor in both technology and business. But with growing political influence and an increasingly polarizing public image, is his focus on government reform undermining Tesla’s brand? As protests swell and stock value tumbles, investors and consumers must ask: Can one person steer both a corporate empire and a political agenda without compromising either?