President Trump’s public intervention on behalf of Tesla marks the most extraordinary chapter yet in the partisan war over America’s preeminent electric vehicle brand.
Why it matters: Elon Musk’s assault on the federal government has supercharged Tesla’s evolution from liberal status symbol to pride-of-MAGA protectorate. The company’s stock has taken a beating along the way.
- “We struggle to think of anything analogous in the history of the automotive industry, in which a brand has lost so much value so quickly,” says J.P. Morgan analyst Ryan Brinkman.
What’s happening: Musk’s efforts to fire thousands of federal workers and dismantle whole government agencies have sparked “Tesla Takedown” protests in at least 100 cities over the last month.
- Those protests spurred vandalism of vehicles and violent incidents at Tesla facilities — including the use of Molotov cocktails.
- Some current Tesla owners have embraced a quieter form of resistance by applying bumper stickers disavowing Musk’s politics — or badges disguising the vehicle’s branding.
Zoom in: With Tesla’s stock hemorrhaging $800 billion in market cap since December, Trump held an event at the White House Tuesday to publicly rally support for his billionaire benefactor’s brand.
- Standing alongside Musk and a row of Teslas on the South Lawn, Trump said he’d buy a Model S sedan for White House staff and threatened to classify anti-Tesla violence as domestic terrorism.
- Photographers captured a shot of Trump holding a Tesla sales script that listed out prices and features, a brazen challenge to ethical norms as the president said he hoped the event would boost Tesla sales.
- “He’s built this great company, and he shouldn’t be penalized because he’s a patriot,” Trump said.
Fox News favorite Sean Hannity boasted of buying one, too, and said he’d give a Tesla away on his website — an offer Trump was quick to share with his own social media followers.
Zoom out: “Tesla is becoming a political symbol of Trump and DOGE, and that is a bad thing for the brand,” warned Wedbush analyst Dan Ives, a longtime Tesla bull.
- Through the first two months of 2025, Tesla sales are down 71% in Germany, 45% in Norway, 44% in France and 44% in Spain, according to registration data reported by Electrek.
- Sales have also been slumping in the critical markets of California and China, Bloomberg reported.
- The company does not report U.S. sales, but Tesla’s U.S. registrations fell 11% in January, according to S&P Global Mobility.
Between the lines: The irony of MAGA’s support for Tesla — whose existence is inextricably linked to the fight against climate change — is not lost on Republicans.
- In a 2022 analysis by Scarborough Research, Teslas were — by far — the car most likely to be associated with Democratic owners.
- Musk’s brand is now poisonous among Democrats, and it’s unclear whether his popularity with Republicans — or Trump’s endorsement — will drive conservatives to buy Teslas in meaningful numbers.
The other side: Plenty of investors on Wall Street are still bullish on Tesla, and Musk has vowed to double production in the U.S. within two years as Trump pushes for a manufacturing renaissance.
- The company, amid Wall Street concerns about cash flow this quarter, has been offering a variety of incentives to juice sales, including 0% financing deals (as long as buyers put down a large down payment).
- “Car buying means something different to everyone and if the price is right, you can still get some consumers to put their personal feelings aside,” Ivan Drury, an analyst at car-research site Edmunds, tells Axios.
The bottom line: Ives, the Tesla mega-bull, warns the next few months will bring a “moment of truth” for investors who want to see Musk recommit to the company — and decouple from DOGE.
- Musk’s biggest ambitions for Tesla include self-driving cars and humanoid robots, with plans to launch a self-driving car network in Austin, Texas, later this year.
- Musk, who did not respond to an Axios request for comment, told investors in January that 2025 may end up as “the most important year in Tesla’s history.”
