Tesla CEO Elon Musk said over the weekend that his involvement in the Trump administration could be hurting the automaker’s stock price.
Speaking at a town hall event in Wisconsin, Musk said that backlash to his role with the so-called Department of Government Efficiency — which is pushing for widespread government job cuts — is creating backlash against his electric car company and hurting the stock.
“What they’re trying to do is put massive pressure on me, and Tesla I guess, to … stop doing this,” Musk said, according to Bloomberg News. “My Tesla stock and the stock of everyone who holds Tesla has gone, went roughly in half. I mean it’s a big deal.”
Shares of Tesla entered Monday already down more than 34% year to date, and the stock has been cut nearly in half from its peak in December. Shares were down another 6% in premarket trading Monday.
The drop for the stock could be a “buying opportunity” for the long term, added, Musk who was in Wisconsin ahead of a state supreme court election there.
The slumping stock isn’t the only sign of public anger with Musk for his political work. Protesters demonstrated at Tesla dealerships this past weekend, and there have been reports of vandalism against vehicles and dealers across the country.
Musk’s role in politics is not limited to DOGE. He publicly campaigned with Trump in 2024 and has been a regular presence at the White House since the new administration took over in January. He also regularly comments on many different political topics on X, the social media company he owns.
The CEO’s rising political profile comes amid signs that Tesla’s core business is slowing. The automaker’s vehicle deliveries declined in 2024, and preliminary data has shown that sales are down again early this year, especially in Europe. In a note to clients on Sunday, investment firm Stifel trimmed its price target on the stock and lowered its sales projections for Tesla.
To be sure, Musk’s political dealings may not be the only reason for Tesla’s struggles. Other U.S. auto stocks have also labored in recent weeks, partly because of threats of higher tariffs on imported goods into the U.S. and retaliation from oversea trading partners, adding uncertainty to an industry whose supply chains are tightly woven between the U.S., Canada and Mexico.
