Senator Dumps Tesla Amidst Political Fallout Over Musk’s Influence
Senator Mark Kelly, a Democrat representing Arizona, has publicly announced his decision to part ways with his Tesla vehicle, citing growing concerns over Elon Musk’s political influence and perceived alignment with former President Donald Trump. Kelly’s move underscores the escalating tensions surrounding Tesla and its association with Musk, who has increasingly become a polarizing figure in American politics.
Kelly’s decision, publicized via a video posted on X, the social media platform owned by Musk, reflects a sentiment shared by some Tesla owners who feel conflicted about supporting a company whose leader’s political views clash with their own. The senator explained that his initial purchase of the Tesla was based on its technological appeal, but recent events have made it impossible to separate the car from Musk’s actions.
"Every time I get in this car, in the last 60 days or so, it reminds me of just how much damage Elon Musk and Donald Trump is doing to our country," Kelly stated in the video. He specifically criticized Musk’s and Trump’s alleged efforts to reduce federal spending through measures such as cuts to Social Security, veterans’ benefits, and healthcare for vulnerable populations.
Kelly’s discontent extends beyond Musk’s political views, encompassing what he perceives as a broader dismantling of government programs and services. Standing in front of his Tesla, Kelly declared it was "time for an upgrade" and that he was "doing the right thing" by selling his electric vehicle.
The caption accompanying the X post further emphasized his reasoning: "I bought a Tesla because it was fast like a rocket ship. But now every time I drive it, I feel like a rolling billboard for a man dismantling our government and hurting people. So Tesla, you’re fired! New ride coming soon."
Kelly’s decision reflects a growing challenge for Tesla: separating the brand from its controversial leader. Reports indicate that Tesla owners have faced online harassment and even vandalism due to their association with Musk.
Recent incidents of vandalism targeting Tesla dealerships and vehicles highlight the intensity of anti-Musk sentiment. In Fort Lauderdale, Florida, 34 new Tesla Cybertrucks were damaged and tagged with offensive messages directed at Musk. A Tesla dealership in Loveland, Colorado, was also targeted with smashed windows, defaced Cybertruck windshields, and an attempted arson. Local media reported that the dealership had been attacked multiple times this year, including one incident where the phrase "Nazi Cars" was painted on the premises.
The wave of vandalism has prompted concern among analysts and investors. Ben Kallo, an analyst at financial service firm Baird, warned that the attacks could negatively impact demand for Tesla vehicles. "When people’s cars are in jeopardy of being keyed or set on fire out there, even people who support Musk or are indifferent Musk, might think twice about buying a Tesla," Kallo stated.
The political divide surrounding Tesla has become increasingly pronounced. While electric vehicles like Teslas were once widely embraced by liberals, Musk’s recent political stances have led some to distance themselves from the brand. Data from S&P Global Mobility reveals that Cybertruck registrations have surged in predominantly conservative-voting states like Texas and Florida.
Former President Trump has expressed support for Tesla and its owners, suggesting he would consider labeling those who commit violence against Tesla owners and dealerships as "domestic terrorists." Trump stated that such actions harm a "great American company" that provides numerous jobs.
House DOGE Subcommittee Chairwoman Marjorie Taylor Greene has also taken action, sending a letter to the U.S. Attorney General and FBI Director requesting an investigation into what she described as "organized" attacks against Musk, Tesla, and the DOGE effort.
The controversy surrounding Musk and Tesla has coincided with a significant decline in the company’s stock value. Since December, Tesla stock has dropped by 50%. Analysts attribute the decline to a combination of factors, including a struggling EV market, a global decline in sales, and branding issues stemming from Musk’s political influence.
JPMorgan analysts have described the situation as unprecedented in the automotive industry, noting that no other brand has lost so much value so quickly. They cited previous instances where Japanese and Korean car brands experienced sales declines during diplomatic disputes with China as the closest parallels.
Despite the challenges, Tesla stock saw a slight increase on Friday, rising by approximately $10 to around $250 per share. However, the long-term impact of the political fallout on Tesla’s brand and sales remains uncertain.
The situation surrounding Tesla highlights the growing intersection of business, politics, and social activism. As CEOs increasingly take public stances on social and political issues, their companies may face both opportunities and challenges in navigating the complex landscape of public opinion. The case of Tesla and Elon Musk serves as a cautionary tale about the potential consequences of aligning a brand too closely with a polarizing figure. The decision by Senator Kelly to sell his Tesla underscores the real-world impact of these issues on consumers and the potential for political considerations to influence purchasing decisions.
