Elon Musk's Rough Ride in Trump's First 100 Days
In this period of 100 days, President Trump's leadership seems to have an impact on Elon Musk and Tesla, as suggested by these 5 graphs.
Elon Musk, once applauded as a big winner of US President Donald Trump's election, experienced a rocky start during the new administration's initial days. The first 100 days saw the billionaire deal with faltering car sales, plummeting Tesla stock prices, and political protests against him and his company.
Musk had believed his hefty bet on Trump would pay off, (though some experts saw his political contributions as a foolhardy gamble)[1]. Dan Ives, a Wedbush analyst at the time, confidently predicted that the benefits for Musk and Tesla outweighed the drawbacks[1].
But as Trump took office, Tesla's stock tumbled, reaching an all-time low after peaking in mid-December[2]. Despite some resilience in other areas, such as Musk's private ventures[1], the overall picture was grim.
A Tale of Falling Stocks and Dropping Prices
The decline in Tesla's stock prices stemmed from the company's reporting of reduced global vehicle sales[2]. While critics called for Musk to step down from his position as CEO[2], he promised to dedicate more time to Tesla and less to the Department of Government Efficiency starting in May[2].
The prices of used Tesla vehicles have also taken a hit. The average price of a used Cybertruck dropped by a stunning 50% within a year[3], while the prices of Model Y and Model 3 decreased by 13% and 10% respectively[3].
An Economic Hit to Musk's Wallet
The downward spiral in Tesla's stock prices had severe consequences for Musk's personal finances. His net worth plummeted by a staggering $150 billion (approximately €131.6 billion) since mid-December[2]. Despite maintaining the title of the world's richest person with a net worth of $335 billion (€294 billion), this figure represented a significant drop from the peak of nearly $480 billion (€421.3 billion) just a few months ago[2].
Protests and Public Backlash
Increasing protests against Musk and Tesla mirrored growing public disapproval. As consumers sought to rebel against the Trump administration, Tesla became a target of vandalism[4]. Google searches revealed a surge in vandalism cases against Tesla in recent weeks[4].
Steve Sosnick, Interactive Brokers' chief market strategist, drew a comparison to basketball legend Michael Jordan's 1990 statement about the dangers of celebrities dabbling in politics[4]. "Tesla is clearly in the crosshairs. Customers who have a choice on how to vote with their money are voting against him," Sosnick said[4].
Sosnick was quick to acknowledge that other aspects of Musk's ventures, such as SpaceX and xAI, were thriving[4]. However, as Tesla is publicly traded, it remains vulnerable to the turbulence brought about by connections to the Trump presidency.
[1] Enrichment: Musk's association with Trump and his involvement in the administration's initiatives led to political backlash, increased regulatory scrutiny, and negatively impacted investor confidence in Tesla and Musk's other ventures.
[2] Enrichment: The Trump administration's policies, including tariff-fueled trade wars and global market instability, caused investors to become cautious about future economic conditions.
[3] Enrichment: Tesla experienced reduced vehicle sales worldwide, directly impacting its financial performance. The company reported a significant decline in its net profits during the first quarter of 2025.
[4] Enrichment: Some investors called for Musk to step away from non-core business activities to focus more on Tesla's operations. Prominent critics argued that Musk's political activities and association with Trump had politicized his brand both in the US and abroad.
[5] Enrichment: Musk's decision to allocate time to the Department of Government Efficiency and his political activities may have raised concerns among investors and the public about his focus on Tesla.
- What's the current state of Tesla's stock prices, seeing as they plummeted, reaching an all-time low after peaking in mid-December?
- Can you explain the drawbacks Musk faced in Trump's first 100 days, as some experts considered his political contributions as a foolhardy gamble?
- How have general-news and politics impacted Elon Musk's business, specifically in terms of investor confidence and public disapproval against his ventures like Tesla?
- Ives, a Wedbush analyst, predicted that the benefits for Musk and Tesla outweighed the drawbacks, but what scenarios are being seen now that echo Steve Sosnick's comparison to Michael Jordan's 1990 statement about celebrities dabbling in politics?
- Despite SpaceX and xAI's thriving, how does Tesla's vulnerability as a publicly traded company remain affected by connections to the Trump presidency and the subsequent turbulence in the market?
