“I don’t like what’s happening to you,” said Trump before slipping into a red Model S and exclaiming, “Wow. That’s beautiful.”
After falling as much as 6 per cent in early trade, Tesla stock closed 5.3 per cent higher after a report from Politico, citing anonymous sources, that Musk may soon step down from leadership of his Department of Government Efficiency, the cost-cutting group that has led to tens of thousands of federal workers losing their jobs.
Tesla investors have complained the DOGE work has diverted Musk’s focus from Tesla, where he is the chief executive. On Tuesday, New York City’s comptroller overseeing pension funds down $US300 million ($476 million) this year on Tesla holdings called for a lawsuit accusing a distracted Musk of “driving Tesla off a financial cliff.”
Tesla’s stock has plunged by roughly half since hitting a mid-December record as expectations of a lighter regulatory touch and big profits with Donald Trump as president were replaced by fear that the boycott of Musk’s cars and other problems could hit the company hard.
Analysts are still not sure exactly how much the fall in sales is due to the protests or other factors. Electric car sales have been sluggish in general, and Tesla, in particular, is suffering as car buyers hold off from buying its bestselling Model Y while waiting for an updated version.
Still, even bullish financial analysts who earlier downplayed the backlash to Musk’s polarising political stances are acknowledging that it is hurting the company, something that Musk also recently acknowledged.
“This is a very expensive job,” Musk said at a Wisconsin rally on Sunday, referring to his DOGE role. “My Tesla stock and the stock of everyone who holds Tesla has gone roughly in half.”
Tesla cars have been smashed and set on fire in recent weeks, and protests have been staged at hundreds of Tesla dealerships. Owners have put bumper stickers on their cars saying, “I bought this before Elon went crazy.”
Europeans have also balked at buying Tesla, especially Germans upset after Musk publicly supported a far-right party in national elections and gave what many say was a Nazi-like salute at a Trump inauguration rally in January.
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The protests come as the Austin, Texas, electric vehicle maker faces fierce competition from other EV makers offering vastly improved models, including those of BYD.
In March, the Chinese EV giant unveiled technology that allows its cars to charge up in just five to eight minutes.
Tesla is expected to report earnings of 48 cents per share for the first quarter later this month, up 7 per cent from a year earlier, according to a survey of financial analysts who the car company by research firm FactSet.
Nearly all of Tesla’s sales in the quarter came from the smaller and less expensive Models 3 and Y, with the company selling less than 13,000 more expensive models, including X and S, as well as the Cybertruck.
