Tesla CEO Elon Musk has acknowledged that his role in the Trump Administration’s Department of Government Efficiency, acronymed as DOGE, is impacting the electric vehicle maker’s stock. Musk referred to his advisory position as “a very costly job.” His involvement in DOGE has led to public demonstrations against the department’s actions, which include accessing sensitive information for millions of Americans and closing down entire agencies in pursuit of reducing government expenses. Over the weekend, protests took place outside Tesla dealerships across the U.S. and in various European cities in response to Musk’s government engagements. Approximately one-third of Musk’s estimated $330 billion net worth comprises stocks in Tesla, the company he still manages while collaborating with Mr. Trump. Following Trump’s election victory, Tesla shares hit a historic high of $479 per share on December 17, only to drop by 48% subsequently. Musk highlighted the significant costs associated with his involvement in DOGE during a town hall gathering in Green Bay, Wisconsin, where he presented $1 million to two attendees. On the following Monday, Tesla stocks experienced a decline of $15.27, equivalent to 5.8%, settling at $248.28.
“What they’re trying to do is put massive pressure on me, and Tesla, I guess, to, you know, stop doing this,” said Musk. “My Tesla stock, and the stock of everyone who holds Tesla, has roughly halved. I mean, it’s a big deal.” He added, “Long-term, I think Tesla stock is going to do fine, so maybe it’s a buying opportunity.” On Saturday, protesters gathered at Tesla locations in New Jersey, Massachusetts, Connecticut, New York, Maryland, Minnesota, and the automaker’s home state of Texas. Pictures posted on social media accounts showed protesters holding signs such as “Honk if you hate Elon” and “Fight the billionaire broligarchy.”
Apart from the protests, Tesla is also experiencing sales pressure, as some previous owners have reported abandoning their vehicles due to Elon Musk’s political activities. Sales of new Teslas in Europe saw a decline of 45% in January, and recent data indicates that Tesla trade-ins have hit an all-time high this month.
In March, the highest share ever of Teslas from the model year 2017 or newer were traded in toward new or used purchases at dealerships, according to Edmunds, a U.S. car shopping website. Notably, the trade-ins were not put toward purchases of new Teslas. Tesla will disclose its first-quarter deliveries on April 2, with Wedbush Securities analyst Dan Ives forecasting that the company shipped 7% fewer vehicles compared with a year earlier. “The anti-Musk and brand issues are clearly at play and a major factor in this weak 1Q delivery number,” Ives wrote in a March 26 research note. “Musk needs to better balance being the CEO of Tesla and running DOGE with investors and employees yearning for Musk’s leadership at this juncture.”
