Tesla CEO Elon Musk has acknowledged that his involvement in the Trump administration’s efforts to reduce government spending may be contributing to the decline in Tesla’s stock price.
Speaking at a town hall event in Wisconsin on Sunday, Musk claimed that his role in the Department of Government Efficiency (DOGE) is drawing criticism and negatively impacting Tesla’s market performance. DOGE, a newly created agency under the Trump administration, is focused on cutting government jobs and reducing federal spending—an initiative that has sparked protests across the country.
Tesla shares have dropped more than 34% since the beginning of the year and have fallen nearly 50% from their December peak of $479.86 per share. On Monday, the stock was down another 6% in premarket trading.
“What they’re trying to do is put massive pressure on me, and Tesla I guess, to … stop doing this,” Musk said. “My Tesla stock and the stock of everyone who holds Tesla has gone, went roughly in half. I mean, it’s a big deal.”
Despite the downturn, Musk suggested the stock decline could present a “buying opportunity” for long-term investors. However, analysts have pointed to other factors weighing on Tesla’s performance, including slowing vehicle sales and broader industry concerns.
Musk’s role in DOGE has led to demonstrations at Tesla dealerships in several states, including Texas, New York, and California. Reports have also surfaced of vandalism targeting Tesla vehicles and showrooms. Some former Tesla owners have cited Musk’s political involvement as a reason for selling their vehicles, with trade-in rates for Teslas reaching record highs in March.
A recent NBC News poll found that 51% of voters have a negative view of Musk, while 47% disapprove of DOGE’s actions. However, the concept of cutting government spending remains divisive, with 46% of respondents supporting DOGE’s mission and 40% opposing it.
Tesla’s stock struggles are occurring alongside signs of a slowdown in its core business. The company’s vehicle deliveries declined in 2024, and early data suggests sales are down again in 2025, particularly in Europe and China. Analysts have also pointed to global trade tensions, rising tariffs, and shifting consumer sentiment as additional factors affecting the company’s outlook.
Investment firm Stifel recently lowered its sales projections for Tesla, citing weaker demand and uncertainty surrounding Musk’s political activities. Wedbush Securities analyst Dan Ives noted that Musk’s dual role as Tesla CEO and a key figure in the Trump administration is raising concerns among investors.
“The anti-Musk and brand issues are clearly at play and a major factor in this weak [first-quarter] delivery number,” Ives wrote in a research note. “Musk needs to better balance being CEO of Tesla and running DOGE with investors and employees yearning for Musk’s leadership at this juncture.”
Musk’s visit to Wisconsin was not just about Tesla—he was also there to campaign for Brad Schimel, a conservative candidate in the state’s Supreme Court election. He has contributed over $12 million to the race and has been actively encouraging voter participation.
At Sunday’s rally, Musk handed out $1 million checks to two voters who had signed a petition supporting Schimel’s candidacy. The tactic, which was previously used during the 2024 presidential election, is part of his broader political engagement through America PAC, a group he funds.
Despite Tesla’s stock decline and growing backlash, Musk remains confident in the company’s long-term success.
“Long term, I think Tesla stock’s going to do fine,” he said.
With Tesla set to report its first-quarter vehicle deliveries on April 2, investors will be watching closely to see if Musk’s political activities continue to impact the company’s performance.
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