Elon Musk has lost $151 billion—nearly half of his fortune—as Tesla’s stock price collapses while he focuses his entire attention on his friend, president Donald Trump and the Department of Government Efficiency (D.O.G.E). The drop, which slashed his $400 billion net worth by 45%, comes as the company struggles with declining sales in, a shrinking customer base, and political backlash in every single market out there. Now Tesla’s stock has been falling for months, but the latest crash has intensified concerns. The company reported declining vehicle sales worldwide in its latest earnings report, with deliveries down 1% last year—its first drop in over a decade—despite the EV market growing by 25%. In America, Tesla sales fell 7% in 2023 and continued dropping another 2% in early 2024, according to Wards Intelligence. In Germany, Tesla registrations collapsed 76.3% in February. France saw a 26% decline. Over in China, Tesla’s deliveries plunged 49% from last year to 30,688 cars in February, per Tesla’s own data. Elon Musk with “best buddy” president Donald Trump at SpaceX’s mega rocket Starship lift off for a test flight from Starbase. Source: AP, File/Brandon Bell Tesla’s stock soared after Trump won the 2024 election, fueled by expectations that Elon’s influence would bring business-friendly policies. Investors also bet on Tesla’s AI and robotics projects, including the 2026 launch of its first fully self-driving car. But Tesla’s stock has since dropped 35%, wiping out most of those gains. Former Tesla enthusiasts are also abandoning the brand. Bob Eckert, a longtime Tesla fan, said he started questioning his decision to own a Model Y after Elon aligned himself with Trump. “As the days and weeks went on, we realized it was not something we could afford to support, even if we lost money,” he said. He sold the car in February, losing $3,000 in the process but replacing it with a Ford Mustang Mach-E. Ford even offered him 0% financing and a $1,000 cash bonus for switching from Tesla. For some, Elon’s politics were the final straw. Larry Boughton, a 76-year-old retired mortgage banker from Houston, said he canceled his reservations for two Cybertrucks in January. “As soon as he started doing all this stuff that Trump wanted him to do, I didn’t want to be a part of it,” he said. “I actually own some Tesla stock, and I’m thinking of selling that as well.” Customers are walking away from Tesla Elon has become a liability, and the shareholders are not happy with him. His political endorsements and controversial personal life are pushing buyers away. He literally backed Germany’s horrendous far-right AfD party publicly, then did what many in the world see as a Nazi salute. As if those weren’t bad enough, he was exposed for having yet another baby mama, who is not only already married, but also leaked their private messages that do not paint Elon in the most respectful of lights. The last straw for Tesla shareholders though was when his ex-girlfriend and mother of his three children Grimes publicly pleaded with him on X to please reach out to her about their sick child. Elon ignored her, which only harmed his reputation even more. Grimes begs for Elon Musk’s attention amid child’s medical crisis. Source: X You can’t claim to belong in the conservative party that lauds family values over anything, and then be estranged from all your baby mamas and children. Now most Tesla stock owners see Elon as nothing but a loser. Back in 2022, 22% of car buyers said they would consider Tesla. By mid-2023, that dropped to 7%, according to Strategic Vision, whose president, Alexander Edwards, said, “At this point, we don’t see any signs of recovery.” Some customers say it’s not even just about the cars anymore. Garth Ancier, a TV executive from Los Angeles, recalled a conversation with other Tesla owners about how driving a Tesla feels like “driving a big red MAGA hat”. That was over a year ago. Now, he’s trying to sell his Model X. “If not for his behavior, I’d probably stick with a Tesla,” he reportedly told WSJ. Protests have started popping up at Tesla showrooms in the US and Europe after Elon called for mass firings of federal workers and backed a far-right German party. Tesla’s Supercharger stations have even been vandalized, with spray-painted swastikas appearing in multiple locations. Protesters gathered earlier this month outside a Tesla showroom in New York. Source: Wall Street Journal Elon continues to alienate Tesla’s customer base Tesla has always had a strong customer base, but political tensions are shifting the brand’s appeal. Republicans are now more likely to buy a Tesla than Democrats, flipping the company’s long-standing demographic trend. Survey data from Morning Consult shows that 23% of Democrats were interested in buying a Tesla in August 2023, but as of February 2024, that number has dropped to 13%.Meanwhile, Republican interest jumped from 15% to 26% in the same period, per the survey. Meanwhile, 63% of those surveyed in December 2023 said they wouldn’t even consider a Tesla, up 10 percentage points from earlier in the year. The survey data also shows that sales collapsed in New York, Los Angeles, San Francisco, and Dallas—key cities for Tesla’s early success—but increased in Las Vegas, Salt Lake City, and Miami-Ft. Lauderdale. Even inside Tesla, employees are questioning Elon’s leadership. Jared Ottmann, a supply-chain engineer, said in a LinkedIn post that he had raised concerns about Elon’s political direction “multiple times” with managers, HR, legal compliance, and investor relations. “The silence from Tesla is deafening,” he wrote. Shortly after, he was fired. Others are also speaking out. Thomas Temme, a senior software engineer in Germany, said Elon’s political shift is undermining Tesla’s mission. “Elon now supports political actors who not only don’t care about the mission but who proactively deny climate change and have a history of fighting everything Tesla stands for,” he also told WSJ. Tesla’s Berlin factory becomes ground zero for controversy Tensions escalated some more when Elon was caught on video during that Nazi salute I was just telling you about. He hasn’t commented directly on the incident but dismissed critics by saying, “The ‘everyone is Hitler’ attack is sooo tired.” Elon Musk’s alleged Nazi salute. Source: Elon Musk X/Twitter Activists quickly projected an image of Elon making the gesture onto Tesla’s Berlin factory, with the word “heil” next to it. Meanwhile, Tesla owners in the US started finding flyers on their cars urging them to sell. Police in Arcata, California, reported at least four Tesla drivers receiving threatening messages on their windshields. Employees inside Tesla’s Palo Alto engineering office are reportedly worried about the impact of Elon’s behavior on hiring and recruitment, according to WSJ. Anil Patel, an engineer at Tesla for more than four years, left the company in December 2023. His resignation email read: “Elon’s company leadership and political actions are the biggest reasons I’m leaving Tesla.” Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now
