Elon Musk’s political stance has dealt a heavy blow to the brand value of Tesla. While the company’s shares lost 35 percent of their value, its market capitalization nearly halved. The high tariffs implemented by US President Donald Trump have shaken the global automotive industry, with Tesla, owned by Elon Musk, bearing the negative effects of these policies. Trump’s aggressive trade policies and tariffs targeting global supply chains led to deep disruptions in the world automotive industry, similar to many sectors. The 25 percent tariff imposed by Trump on imported cars and trucks to increase domestic production raised concerns in the global automotive market. In particular, the electric vehicle giant Tesla experienced significant losses during this period. Musk’s proximity to Trump in terms of his stance has resulted in serious financial and reputational costs for both himself and Tesla. Trump’s high tariffs on many countries, especially China, mean a direct increase in costs for companies like Tesla that rely heavily on Chinese and Asian production. These policies also weaken Tesla’s competitiveness in the global market.

Production and Deliveries Decline Tesla had announced vehicle production and delivery data for the first quarter of 2025 earlier this month. According to the report, the company produced 362,615 vehicles in the first quarter of this year, down from 433,371 vehicles produced in the same period in 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, falling to 336,681. Market expectations had been for the company to deliver between 360,000 and 370,000 vehicles in this period.

Value Halved The losses in production and sales at Tesla were also reflected in its stock and market value. In the first quarter of this year, Tesla shares lost about 35 percent of their value, trading significantly below their position at the end of 2024. With a market value of approximately $1.37 trillion at the beginning of this year, Tesla experienced a significant loss, dropping to $713.6 billion, nearly halving in value.

Faced with Protests and Boycotts Musk’s proximity to Trump during this period not only impacted the company’s performance on the stock market and market value, but also tarnished its 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 Efficiency (DOGE) when Trump was re-elected president. The cost-cutting measures taken by DOGE under Musk’s leadership and the dismissal of thousands of federal employees had sparked controversy. In recent times, demonstrations had been held in various parts of the US in front of Tesla-owned car dealerships, with arrests made during protests. In parallel with all these events, Musk is also facing significant losses in his personal wealth, which has decreased by $135 billion since the beginning of the year to $298 billion.