Elon Musk and Donald Trump address reporters while standing beside a Tesla Cybertruck. Photo: Mandel Ngan/AFP/Getty Images.
Tesla and its CEO Elon Musk are in hot water as controversy swirls around the company. One of Tesla’s strongest backers has warned that Musk’s increasing involvement with Donald Trump is damaging both his reputation and the electric vehicle giant’s brand. As if that weren’t enough, Tesla also recalls 46,000 Cybertrucks in the U.S. over safety concerns.
Musk’s Trump Ties Spark Backlash
Musk’s role in Trump’s administration—leading a controversial government efficiency initiative known as Doge—has triggered outrage among investors and consumers alike. Critics argue that his efforts to cut costs and streamline government agencies have gone too far, leading to legal and ethical concerns.
Tesla’s shares have plunged by a third in the past month as investors worry about the fallout. Customers are also reacting. On March 29, Tesla showrooms worldwide will face over 500 protests organized by an activist group called Tesla Takedown. The protests follow growing dissatisfaction with Musk’s political stance, which many believe is hurting Tesla’s reputation.
Massive Recall Adds to Tesla’s Woes
While Musk’s political controversies rage on, Tesla is dealing with another major problem: a safety recall affecting 46,000 Cybertrucks. The recall was issued due to a defect in the exterior panelling, which could detach while driving and pose a serious road hazard. The National Highway Traffic Safety Administration confirmed that Tesla will replace the faulty parts for free.
This recall adds to a series of quality concerns surrounding Tesla’s newest model. The Cybertruck, heavily hyped before its release, has faced criticism over manufacturing issues, and this latest problem only deepens skepticism about its reliability.
Stock Prices Slide as Protests Gain Momentum
Tesla’s falling stock prices reflect growing uncertainty among investors. Analysts warn that Musk’s dual role as Tesla’s CEO and Trump’s policy advisor is creating a “brand tornado crisis moment” that could have long-term consequences for the company.
Dan Ives, a well-known Tesla supporter and managing director at Wedbush, called for Musk to step back from his political role and refocus on Tesla. According to Ives, Musk’s continued involvement with Trump’s policies could lead to permanent damage to Tesla’s brand, something the company can’t afford as competition in the electric vehicle market heats up.
Tesla Dropped from the Vancouver Auto Show
The backlash isn’t just coming from investors and activists. The Vancouver International Auto Show made headlines when it abruptly removed Tesla from its lineup just hours before opening. Organizers cited safety concerns, given the expected protests and public unrest surrounding Musk’s political ties.
Musk Dismisses Protests as ‘Deranged’
In a recent interview, Musk brushed off the backlash, calling Tesla’s critics “deranged.” He claimed the protests were politically motivated and aimed at undermining his efforts to reform government spending. However, the growing opposition suggests the controversy is far from over.
