Tesla's Reputation Plummets as Musk Aligns with Trump

Ladies and gentlemen, buckle up! We're diving headfirst into the wild world of Tesla, where the stock has taken a nosedive, and the company's reputation is in freefall. Elon Musk's political alignment with President Donald Trump has sent shockwaves through the market, and the results are nothing short of catastrophic. Let's break it down!



First things first, the numbers don't lie. Tesla's brand value has plummeted by a staggering $15 billion over the past year. That's right, folks—$15 BILLION! According to Brand Finance, Tesla's value has dropped from $66.2 billion at the start of 2023 to a mere $43 billion by January 2025. This is a company that was once on top of the world, selling the most cars in its history, and now it's crumbling under the weight of Musk's political antics.

But it's not just about the money. The consumer perception of Tesla has taken a massive hit. In Europe, Tesla's consideration score dropped from 21% to 16% on average from 2024 to 2025. People are turning their backs on Tesla, and it's all because of Musk's right-wing stance. He's targeted diversity schemes, made offensive gestures, and even platformed a right-wing political party from Germany. This is not the kind of behavior that inspires consumer confidence, folks!

And let's not forget about the Trump administration's policy shifts. The elimination of EV-friendly policies has sent Tesla's financial performance into a tailspin. The federal tax credit for electric vehicles is on the chopping block, and if it goes, every single Tesla car just increased by $7,500. That's a huge negative, given that 60% of America can't afford an unexpected $600 bill, let alone a $7,500 increase.

But wait, there's more! The Trump administration has also requested a government pause on the disbursement of funds for electric vehicle charging. Tesla has received about $31 million from the National Electric Vehicle Infrastructure program, and now that's at risk. This could hinder Tesla's ability to expand its charging network, which is crucial for the adoption of EVs.



Now, let's talk about the analysts. The bulls and the bears are at each other's throats, and the market is feeling the heat. Bullish analysts like Wedbush senior analyst Dan Ives argue that Tesla's future lies in autonomous driving and robotics. He says, "The story for Tesla going forward is autonomous and robotics, and we've never viewed Tesla as an automobile company." But the bears, like Gerber Kawasaki CEO Ross Gerber, aren't buying it. Gerber says, "I literally take my Cybertruck. I can't drive five minutes without having to disengage. And then the Waymos are just like driving around me like crazy. And I'm like, we're just not there. And I don't think the hardware is going to get us there and people aren't buying the vehicles."

So, what does this all mean for Tesla's future? It's a mixed bag, folks. On one hand, the decline in brand value and consumer perception could lead to a loss of market share. On the other hand, Musk's alignment with Trump could open up a new customer base for Tesla. But it's too soon to say whether this new customer base will balance out those who are bailing on Tesla for political reasons.

One thing is for sure, though—this is a company in crisis. Tesla's stock has plunged by over 50% since December 2024, erasing over $800 billion in market value. This is a dramatic collapse that has stunned shareholders and analysts alike. And with Musk's political antics showing no signs of slowing down, it's hard to see how Tesla can turn things around.

So, what do you do, folks? Do you hold onto your Tesla shares, hoping for a rebound? Or do you cut your losses and run? The choice is yours, but one thing is clear—this is a company in turmoil, and it's going to take a lot more than a few political stunts to turn things around. Stay tuned, folks—this story is far from over!