The High Stakes of Elon Musk’s Political Investment

Elon Musk, the visionary behind Tesla, made bold bets in the political arena during the Trump campaign, investing what many estimated to be hundreds of millions of dollars. At the time, many observers felt this was a wise expenditure, a calculated risk that could yield substantial returns for both Musk and his electric vehicle empire.

Dan Ives, a Wall Street analyst from Wedbush, encapsulated this sentiment shortly after Trump’s election victory. He referred to Musk’s gamble as a “poker move for the ages,” suggesting that the potential rewards for Musk and Tesla would outweigh any repercussions. But, as time has unfolded, the narrative seems to have shifted dramatically. What appeared to be a brilliant strategy has begun to unravel.

Fast forward to today: Musk’s fortunes have taken a downward turn. As we reflect on the first 100 days of Trump’s presidency, the picture is not rosy. Falling car sales, a noticeable decline in Tesla stock, and rising political protests against Musk and his business have all contributed to his current struggles. It raises a pertinent question: How do the intertwining threads of business and politics affect a billionaire’s empire?

Understanding the Numbers

The numbers tell a story of their own. Since Trump’s inauguration, Tesla’s stock price has faced a significant decline. In December, shares reached an all-time high of $479.86, only to slip steadily downward amid a notable slowdown in global vehicle sales. This begs the question: Could the political atmosphere be influencing consumer confidence?

High-profile investors have voiced their concerns, urging Musk to distance himself from political entanglements and refocus on the automotive company. They argue that this shift is essential for revitalizing Tesla, especially since Musk has pledged to dedicate more time to the car maker starting in May. Yet, some observers would ask: Is this enough to mend the fractures that have developed?

One telling indicator of Tesla’s waning brand strength is the plummeting average price of used Tesla vehicles. With new sales stagnating, current owners have become disillusioned—largely due to Musk’s political forays—and are putting their vehicles up for sale. This trend is alarming: March data indicated a stunning 10% drop in used Tesla prices over the year. How much can brand reputation withstand when public opinion shifts so dramatically?

The Ripple Effects

The financial implications for Musk are staggering. Despite the rising valuations of his private ventures, the decline in Tesla’s stock has shaved approximately $150 billion from his net worth since mid-December. Today, he still holds the title of the world’s richest person, with a net worth of $335 billion, yet this is a stark drop from his peak of nearly $480 billion just months ago.

The reality is sobering: fewer consumers are making purchases, with Tesla’s trailing net income decreasing by 57% since last year. Auto revenue fell by 20% last quarter, and first-quarter deliveries in 2025 saw a shocking 13% decrease compared to the previous year. What does this say about consumer sentiment in a market that once viewed electric vehicles as the future?

As Ross Gerber, a notable figure in the investment community, recently asserted, “Customers who have a choice on how they vote with their money are voting against him.” This illustrates a burgeoning trend where political affiliations are affecting consumer choices, echoing a larger societal shift.

Protests and Popular Opinion

Notably, protests against Musk and Tesla have surged as consumers express their discontent with the political climate of the Trump administration. Data suggest that incidents of vandalism targeting Tesla vehicles have intensified. This raises the question: Can a public figure remain insulated from the political currents swirling around them?

Steve Sosnick, chief market strategist at Interactive Brokers, remarked, “Tesla is in the obvious crosshairs.” His analogy involving Michael Jordan highlights the complexities of celebrity branding mixed with political affiliation. In a statement from 1990, Jordan noted why he refrained from supporting political causes: “Republicans buy sneakers too.” However, Sosnick countered this by pointing out that “the problem for Tesla is that Democrats buy electric cars too.”

Musk’s approach has, unfortunately, politicized his brand—both in America and internationally. By aligning with right-wing factions, he has unwittingly alienated a significant portion of potential customers who lean left. This leads to a crucial reflection: How can a business leader navigate personal beliefs while keeping their company apolitical?

While Musk’s other ventures, such as SpaceX and xAI, continue to thrive, Tesla faces unique challenges due to its public nature. As market pressures mount and consumer sentiment shifts, the stakes for Musk have never been higher. The intertwined fates of politics and business present a complex narrative that is likely to evolve in the coming months.

Edited By Ali MusaAxadle Times International–Monitoring