Musk’s Government Role Is Costing Tesla—Literally

Tesla CEO Elon Musk is making headlines again—but this time, it’s not about a new product or big innovation. Instead, he’s calling his new government role “a very expensive job.”

Musk recently joined the Trump Administration’s Department of Government Efficiency (DOGE), and the move is stirring up backlash. Protesters across the U.S. and even parts of Europe are showing up at Tesla dealerships to express their anger over DOGE’s controversial actions—like cutting government programs and accessing personal data.

The backlash is hitting Tesla where it hurts. Since Trump’s election in November, Tesla stock surged to a high of $479 in December but has since dropped nearly 50%. “My Tesla stock and the stock of everyone who holds Tesla went roughly in half,” Musk said during a town hall in Wisconsin.

And it’s not just about stock prices. Sales in Europe fell 45% in January, and Tesla trade-ins are at an all-time high—many of them going toward non-Tesla vehicles. Former fans are ditching their Teslas in protest of Musk’s political activity.

With Q1 delivery numbers expected to be down 7% year-over-year, some investors and employees are urging Musk to rebalance his priorities. As analyst Dan Ives puts it, “Musk needs to better balance being CEO of Tesla and running DOGE.”

Whether this turns into a short-term dip or a long-term brand issue, one thing is clear: the pressure is on.