Elon Musk's increasing political engagement, especially his alignment with Trump, is adversely affecting Tesla's brand and market performance. The automaker reported a staggering 71% drop in profits during Q1 2025, reflecting weakened sales and growing anti-Musk sentiment. Deliveries also fell sharply, with record high trade-ins and declining sales in Europe. In light of these challenges, experts are urging Musk to shift focus from politics back to business operations to avoid further deterioration, which could jeopardize Tesla's standing in a competitive EV market.
Tesla's disappointing first-quarter earnings, which saw profits drop 71% amid weakened sales and anti-Musk sentiment, demonstrate just how much the brand has fallen out of favor.
They have a certain significant public image problem that's really something we haven't seen before in this industry, added Tucker, suggesting the impact of Musk's political ties on the brand's reputation.
Even one of Tesla's most unwavering bulls, Dan Ives, has begged Musk to focus less on politics and more on his business 'or else unfortunately darker times are ahead for Tesla.'
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