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An investor survey by Morgan Stanley said 85 percent think Musk's political activities have had a "negative" or "extremely negative" impact on Tesla's business fundamentals, CNBC reported. An analyst from the investment banking firm received answers from 245 participants, a relatively small sample with some investors who don't have Tesla stock.
Shares in the electric automaker were at $247.08 when trading opened on Wednesday, Mar. 12. That's down more than 42 percent from Tesla's 2025 peak on Wednesday, Jan. 15, and even further below Tesla's all-time high about a month after the 2024 Presidential election.
When asked specifically about Musk's political efforts, 45 percent of respondents said they had a "negative" effect on Tesla, while 40 percent described the impact as "extremely negative." Just three percent saw the billionaire's political activity as "positive" for Tesla and 12 percent called it "insignificant."
Musk has faced intense backlash for his work as an advisor to President Donald Trump and de facto leader of the Department of Government Efficiency. DOGE was created by Trump and Musk has been tasked with gutting federal agencies to cut spending.
A "Tesla Takedown" protest in Columbus, OH, on February 22, 2025.
Tesla has become the target of massive protests and boycotts since Trump's election. The rapidly growing movement has spread beyond the US to Europe, where Musk has also tried to gain political influence.
Some Tesla owners have chosen to sell their vehicles to avoid being associated with Musk. Others have even gone as far as disguising their vehicles as brands other than Tesla.
In response to the rising criticism and falling stock, Trump decided to promote Tesla outside the White House on Tuesday, Mar. 11. The President modeled five Tesla vehicles and got inside a red Model S with Musk.
Tesla CEO Elon Musk and President Donald Trump sitting inside a Model S car outside the White House on March 11, 2025.
On his social media platform Truth Social, Trump claimed he would buy a Tesla "as a show of confidence and support" for Musk.
"Why should he be punished for putting his tremendous skills to work in order to help MAKE AMERICA GREAT AGAIN???" Trump posted.
The immediate impact of the White House lawn stunt is unclear but investors are growing concerned about Tesla's financial health. The survey found that 59 percent of respondents expect Tesla to deliver fewer vehicles in 2025 compared to 2024, with 21 percent predicting a drop of more than 10 percent.
Tesla purchases have plummeted around the world, with the company reporting its first global sales dip in 2024, the Associated Press reported. Sales have especially crashed in Germany, where Musk has emphatically supported Alternative for Germany (AfD), a far-right nationalist political party.
Half of Americans now have an unfavorable view of Musk, according to an NPR/PBS News/Marist College poll released on Monday, Mar. 3. That's compared to 39 percent who had a favorable opinion of him and 11 percent who either had no opinion or never heard of Musk.
The Marist poll also said that 55 percent of Americans believe DOGE's drastic cuts to federal agencies will do more harm than good.
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