Elon Musk’s political stance dealt a heavy blow to Tesla’s brand value. The company’s shares plummeted by 35 percent, with its market value nearly halved. The high tariffs implemented by President Donald Trump have rocked the global automotive industry, and Tesla, owned by Elon Musk, also suffered from the negative effects of these policies. Trump’s aggressive trade policies and tariffs on global supply chains have caused deep tremors in the world automotive industry. The 25 percent tariff imposed on imported cars and trucks by Trump to increase domestic production raised concerns in the global automotive market. Particularly, the electric vehicle giant Tesla experienced serious losses during this process. Musk’s proximity to Trump resulted in significant financial and reputational costs for both himself and Tesla. The high tariffs imposed by Trump on many countries, especially China, directly translate to an increase in costs for companies like Tesla that rely heavily on production in China and Asia. These policies also weaken Tesla’s competitive position in the global market.

DECREASES IN PRODUCTION AND DELIVERIES
Tesla revealed vehicle production and delivery data for the first quarter of 2025 earlier this month. The company produced 362,615 vehicles in the first quarter of this year while it produced 433,371 vehicles in the same period of 2024. In addition to the decrease in production, the number of vehicles delivered by Tesla in the first quarter of this year also dropped by approximately 13 percent annually to 336,681. Market expectations were that the number of vehicles delivered by the company in this period would be between 360,000 and 370,000.

HALF THE VALUE LOST
The decline in production and sales at Tesla reflected on both the share and market value. Tesla shares lost about 35 percent in the first quarter of this year, drifting far from its position at the end of 2024. With a market value of about 1.37 trillion dollars at the beginning of this year, Tesla suffered a significant value drop, plummeting to 713.6 billion dollars, almost cut in half.

FACED WITH PROTESTS AND BOYCOTTS
Musk’s proximity to Trump during this period not only affected the company’s performance on the stock market and market value but also tarnished the brand value. Due to Musk’s political rhetoric and actions, Tesla faced protests and boycotts. Musk, who supported Trump during the election campaign, was appointed to head the Department of Government Productivity (DOGE) after Trump’s reelection. The cost-cutting measures and the termination of thousands of federal employees by DOGE under Musk’s leadership sparked controversies. Recently, protests were organized in various regions of the United States in front of Tesla’s car dealers owned by Musk, with arrests occurring during the demonstrations. Alongside all these events, Musk is also experiencing significant losses in personal wealth, with his wealth decreasing by 135 billion dollars since the beginning of the year, dropping to 298 billion dollars.