Tesla is becoming the Achilles heel of the alliance between Elon Musk and Donald Trump. So far in 2025, the company has suffered a 71% drop in profits, faced acts of vandalism in the United States, organized boycotts in Europe and an increasingly negative public perception. Beyond the slowdown in the electric car market, what seems to be at stake is something much deeper: the market and consumer response to an administration that rules without checks and balances or scruples.
According to data presented by the company itself and quoted by AFP, Tesla closed the first quarter of the year with only 409 million dollars in profits and a 13% drop in global sales. Financial analysts were already anticipating negative figures, but did not expect such a plunge. As Musk himself acknowledged, the problem is not only economic: "the demand for cars is being affected by a changing political sentiment," he said.
The phrase is revealing. The central role that Elon Musk has assumed in the Trump administration – as head of the DOGE office, in charge of implementing drastic cuts to the state apparatus – has aroused rejection, protests and acts of sabotage that cannot be disassociated from Tesla's financial performance. A message from the market In the U.S., more than 20 violent acts against Tesla dealerships have been reported so far this year, from arson and Molotov cocktails to graffiti such as "Fck Elon," as reported by The Guardian and Live Now Fox.
In Europe, the backlash has taken other forms: boycotts, plummeting sales (76% in Germany in the first quarter) and campaigns like StopElon.eu, which invites Tesla owners to stick stickers on their vehicles to disassociate themselves from the CEO without giving up their cars. It's a clear response: Tesla has become a symbol of an administration that many see as authoritarian, elitist and corrosive to institutions. And while consumers are sending a message with their purchasing decisions, the markets are also speaking.
After weeks of stock market losses, Musk announced that he would "significantly" reduce his dedication to politics to focus again on Tesla. "My time allocation to DOGE will decrease significantly," he said at a conference with investors, quoted by AFP. The reaction was immediate: the stock rose 5%, as reported by El País.
Governing without rules has consequences Musk's presence in the state apparatus is not decorative. From his position at DOGE he has pushed for the closure or downsizing of agencies such as USAID, blocked budgets for social programs, censured regulatory bodies such as the CFPB and imposed business methods on public institutions. As AFP reported, his measures have included mass mailings to federal officials urging them to resign and weekly productivity demands.
Musk has boasted on social media that he has "eliminated waste," while being greeted like a rock star in the Oval Office with his son in his arms. But that image of technocratic efficiency is starting to take on water. The DOGE has not met its goal of reducing spending by $2 trillion.
The figure was first lowered to $1 trillion and in April to just $150 billion, amid systematic errors on the agency's web portal. Meanwhile, Tesla is paying the price. The company's chief financial officer, Vaibhav Taneja, told AFP that "the impact of vandalism and unwarranted hostility towards our brand and our employees has had repercussions in some markets."
And although they managed to sell all old stock, the company has already cut its revenue forecast for 2025. When the symbol becomes a liability Tesla has for years been a symbol of innovation, clean technology and progress. Today, it is associated with a figure that many see as authoritarian, polarizing and dangerous.
Elon Musk, once an icon of entrepreneurship, has become the corporate face of Trumpism 2.0. And the market – that unforgiving judge – does not seem willing to reward him for it. The message is clear: you can have the best technology in the world, but if you lose public trust, the value evaporates.
In the power play between Donald Trump and Elon Musk, Tesla has gone from being the trophy to becoming the weak flank. The drop in profits does not only reflect economic problems: it is a reflection of political capital also wearing out. Consumers and markets are making it clear that there are lines that even big brands cannot cross with impunity.
With information from AFP
