‘Tesla Takedown’ Movement Reaches Climax – Is Elon Musk Being Forced to Step Down?

TradingKey - Dissatisfaction with Tesla CEO Elon Musk's political stance through his leadership of the U.S. Government Efficiency Department (DOGE) has fueled protests against Tesla across the United States, Canada, Europe, and beyond. The "Tesla Takedown " movement reached a new peak on Saturday as demonstrators surrounded all Tesla showrooms in the U.S. for the first time.

Under Musk’s leadership, the U.S. Government Efficiency Department has aggressively implemented government cost-cutting measures, including significant reductions in federal employees, healthcare benefits, and government-funded research projects. These actions have caused trouble for institutions and individuals reliant on government funding.

Outside the U.S., Musk’s interference in European politics has further fueled resentment toward his political role.

On Saturday, March 29, thousands of people worldwide responded to the "Tesla Takedown" protest movement, with over 200 demonstrations held across the United States alone. This "Global Day of Action" aimed to organize 500 protests worldwide.

The protests seek to diminish Musk’s political influence by urging people to sell their Tesla stocks and cars. In more extreme cases, some demonstrators have resorted to vandalizing Tesla vehicles. Both former President Donald Trump and the U.S. Department of Justice have condemned such actions as domestic terrorism.

Tesla’s sales in many key markets plummeted by nearly 40% in the first two months of the year. Analysts predict that Tesla’s first-quarter performance will shift from growth to decline.

Wedbush analyst Dan Ives, a prominent Tesla bull, stated that investor patience with Tesla has run out. The limited brand damage Tesla had suffered thus far has escalated into what he calls a “brand tornado crisis moment for Musk and Tesla.”

Ives argued that the more Tesla becomes a political symbol, the greater the harm to its brand and stock. He advised Musk to step down from the DOGE and focus on restoring his leadership at Tesla.

The analyst believes that Musk’s departure from the political stage would dissipate much of the criticism, though it would leave scars on Tesla’s brand, but would not result in permanent damage.

Tesla’s stock has rebounded from downturns multiple times in the past, but a strategist said that, with the undeniable political backdrop, this time feels different.

Analysts noted that the market is still awaiting breakthroughs in Tesla’s autonomous driving technology. While the long-term outlook isn’t necessarily bleak, the current situation makes the road ahead unclear.

As of writing on March 31, Tesla’s stock was trading at $265.55, marking a roughly 30% decline year-to-date. Following the "Tesla Takedown" protests, Tesla’s shares fell nearly 5% in after-hours trading on March 31.