Musk claims political backlash over government cuts is impacting Tesla’s stock performance and causing public protests against him.

In Short

Elon Musk believes his role in the Trump administration is harming Tesla’s stock price, which has dropped significantly this year.

He is also supporting a conservative candidate in a state election, but Tesla faces additional challenges like declining vehicle deliveries and increased tariffs in the U.S. auto industry.

Elon Musk has stated that his involvement in the Trump administration may be negatively impacting Tesla’s stock price.

During a town hall event in Wisconsin, he expressed concern that his position with the Department of Government Efficiency, which advocates for government job cuts, has triggered backlash against Tesla.

Musk noted that his stock and that of Tesla has significantly decreased, with shares down approximately 34% year-to-date and nearly halved from their peak in December.

Long-term opportunity

On Monday, shares were down an additional 6% in premarket trading. Despite the decline, Musk suggested this could represent a long-term buying opportunity.

He is also actively supporting a conservative candidate in an upcoming state supreme court election, having invested over $12 million in the race.

Musk’s political engagement has led to public demonstrations against him, including protests at Tesla dealerships and vandalism directed at Tesla vehicles.

Aside from his role in the Trump administration, Musk has been a notable political figure, campaigning with Trump in the 2024 elections and frequently commenting on various political issues on X, the social media platform he owns.

Tesla is reportedly facing challenges beyond Musk’s political activities. The company has experienced a decline in vehicle deliveries, particularly in Europe, and a recent note from investment firm Stifel has lowered both its price target and sales projections for Tesla.