Elon Musk’s vocal and financial backing of Donald Trump’s presidential campaign led many observers to predict significant benefits for the billionaire and his companies under a second Trump administration.
However, as the first 100 days of the new term conclude, the reality for Musk and his flagship electric vehicle company, Tesla, appears markedly different, characterized by slumping sales, a falling stock price, and increasing political backlash.
Initial expectations were bullish following Trump’s victory.
Wedbush analyst Dan Ives, shortly after the election, described Musk’s significant campaign spending as a potentially savvy gamble: “We believe the major benefits for Musk and Tesla far outweigh any negatives as this continues to be a ‘poker move for the ages’ by Musk betting on Trump,” Ives stated in November.
Yet, the ensuing period has presented substantial headwinds for the electric vehicle maker.
Elon Musk’s Tesla’s stock slides post-inauguration
Tesla’s share price, a key indicator of investor confidence, has faced significant pressure.
After reaching an all-time high of $479.86 in mid-December, prior to Trump being sworn in, the stock has tumbled considerably.
This decline coincides with an ongoing slowdown in global vehicle sales for the company and has prompted calls from some prominent investors for Musk to step away, even as the CEO has pledged to dedicate more time to Tesla starting in May, reducing his involvement with the Department of Government Efficiency.
Used car market signals brand strain
Further evidence of weakening demand and potential brand erosion can be seen in the used car market.
Prices for pre-owned Teslas have fallen sharply this year, suggesting current owners, potentially dismayed by Musk’s political alignment, are selling their vehicles, contributing to market saturation.
According to data from CarGurus, used Tesla prices overall dropped 10% year-over-year in March.
Specific models saw even steeper declines over the past year, with the average used Cybertruck price down a staggering 50%, while the Model Y and Model 3 saw drops of 13% and 10%, respectively.
Bottom line blues: profits and deliveries falter
The challenges are reflected directly in Tesla’s financial performance and Musk’s personal wealth.
The company’s trailing 12-month net income has plummeted by 57% since its peak in 2023.
Automotive revenue fell 20% in the last reported quarter, and crucial vehicle deliveries for the first three months of 2025 significantly missed expectations.
Tesla delivered approximately 336,700 EVs in Q1, a 13% decrease compared to the same period in 2024.
This downturn has significantly impacted Musk’s fortune; despite rising valuations for his private ventures like SpaceX and xAI, the slide in publicly traded Tesla stock has erased roughly $150 billion from his net worth since mid-December, dropping it from a peak near $480 billion to around $335 billion, though he remains the world’s richest person.
“Customers who have a choice on how they vote with their money are voting against him,” investor Ross Gerber bluntly told Business Insider last week.
The politicization problem: backlash hits Tesla
Increasingly, analysts link Tesla’s struggles to Musk’s heightened political profile and alignment with the Trump administration.
Rising protests against Musk and Tesla, along with an uptick in reported vandalism incidents tracked via Google Search data, suggest a growing consumer backlash.
“Tesla is in the obvious crosshairs,” commented Steve Sosnick, chief market strategist at Interactive Brokers, in an interview with Business Insider.
Sosnick drew a parallel to basketball legend Michael Jordan’s famous 1990 quip about avoiding political endorsements: “Republicans buy sneakers too.”
Sosnick applied this logic to the EV market.
“The problem for Tesla is that Democrats buy electric cars too, in fact they were more likely to buy electric cars, and thus Teslas, than Republicans,” he explained.
“He politicized his brand in the US, and by espousing right-wing parties in Europe and elsewhere, he politicized his brands overseas as well.”
While acknowledging the continued success and growth of Musk’s private enterprises like SpaceX and xAI, Sosnick emphasized that Tesla’s status as a publicly traded consumer company makes it uniquely vulnerable to the negative consequences stemming from its CEO’s political associations during the polarizing start to Trump’s second term.
The first 100 days suggest the anticipated benefits of Musk’s political alignment have yet to materialize for Tesla, replaced instead by tangible market and brand challenges.
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