Tesla CEO Elon Musk acknowledged that his role in the Trump Administration with the Department of Government Efficiency, or DOGE, is weighing on the electric vehicle maker’s stock, calling his advisory role “a very expensive job.”
Musk’s role at DOGE has sparked protests from voters who are opposed to DOGE’s activities, including gaining access to sensitive data for millions of Americans and shuttering entire agencies as the billionaire seeks to slash government spending. On Saturday, crowds amassed outside Tesla dealerships throughout the U.S. and in some cities in Europe to protest his government activities.
About one-third of Musk’s estimated $330 billion fortune consists of the stock he holds in the electric vehicle company that he continues to run while also working alongside Mr. Trump. After Mr. Trump was elected in November, Tesla rose to a record high on Dec. 17 of $479 per share, but the stock has has since tumbled 48%.
“This is a very expensive job, is what I’m saying,” Musk said of his DOGE activities during a Sunday evening town hall in Green Bay, Wisconsin, where he gave away $1 million each to two voters.
In early Monday trading, Tesla slipped $15.27, or 5.8%, to $248.28.
“What [the protesters are] trying to do is put massive pressure on me, and Tesla I guess, to you know, I don’t know, 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.”
He added, “Long term I think Tesla stock’s going to do fine, so maybe it’s a buying opportunity.”
On Saturday, protesters flocked to Tesla locations in New Jersey, Massachusetts, Connecticut, New York, Maryland, Minnesota and the automaker’s home state of Texas, with pictures posted on social media accounts showing they held signs such as “Honk if you hate Elon” and “Fight the billionaire broligarchy.”
Hit to Tesla sales
Aside from the protests, Tesla is also facing pressure on the sales front, with some former owners saying they have ditched their vehicles over Musk’s political activities. Sales of new Teslas in Europe plunged by 45% in January, while recent data also shows that Tesla trade-ins reached a record high this month.
In March, the highest share ever of Teslas from model year 2017 or newer were traded in toward new or used purchases at dealerships, according to Edmunds, a U.S. car shopping website. Notably, the trade-ins were not put toward purchases of new Teslas.
Tesla will disclose its first-quarter deliveries on April 2, with Wedbush Securities analyst Dan Ives forecasting that the company shipped 7% fewer vehicles compared with a year earlier.
“The anti-Musk and brand issues are clearly at play and a major factor in this weak 1Q delivery number,” Ives wrote in a March 26 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.”
