The Tesla take down movement

Over the last few days, demonstrators have gathered at over 50 Tesla showrooms across the United States in protest of Elon Musk’s role in DOGE (“Department of Government Efficiency”), established by President Donald Trump. The protests are part of “Tesla Takedown,” which, according to its website, hopes to encourage stakeholders to “sell your Teslas, dump your stock, join the picket lines.” The movement is gathering pace, with events being organized in Europe, including in London this weekend.

As CEO of Tesla, Elon Musk (who I have enjoyed writing about before for the newsletter) has a little bit of a crisis on his hands.

Some would argue that competition in the electric vehicle industry is intensifying, with increased innovation in China and Europe, and that it is too early to say for sure how much damage Musk is causing to Tesla because so many other factors could explain its current troubles. Others, like myself, would instead suggest that it is his entry into right-wing politics that is turning off potential customers who don’t share his views and, therefore, causing shareholders to dump the stock.

In January, Tesla sales plunged over 40% in Europe despite an overall rise in electric vehicle sales. This is, in part, due to consumers not being happy with his views and political activism. By the way, this is not only due to his stance on Trump. If you remember, he backed the far-right, pro-Russian, anti-Muslim party in Germany, called Keir Starmer an “evil tyrant” who runs a “police state,” and recently also stated that Canada is not a real country. The backlash from these comments has been fierce.

It is now hard for people to call themselves “proud owners of a Tesla.” People want to buy products that make them feel good, knowing that they are supporting a responsible business.

It is true that boycotts have a habit of fizzling out, but if Tesla’s stock is any indicator, the company’s prospects are deteriorating, and Musk’s position in the Trump administration isn’t helping. The negative effect on Tesla also brings concerns about Musk’s other investments and contracts, including Starlink.

Data shows that in December 2024, Musk became the first person to have a net worth above $400 billion. He has since lost $52 billion in net worth as shares of Tesla have plunged 27.6% in February. A small dent in his vast fortune, but a dent nevertheless.

Some commentators have suggested that it is “Marketing 101: don’t get involved in politics, or people will stop buying your products.” In a world where stakeholders are so closely intertwined, it is impossible to completely exclude any involvement in politics when you are one of the richest men in the world.

Perhaps a solution to the Tesla crisis is for Elon Musk to consider dissociating his role as CEO of Tesla from his plans for DOGE. What is clear, though, is that Tesla has a crisis on its hands, and it will be interesting to see what Elon Musk will do to help rebuild the brand’s reputation.