Will leaving Trump be enough for Musk to save Tesla?

Tesla's Troubles

Tesla is facing a global boycott due to Elon Musk's close ties to Donald Trump and his controversial work heading the Department of Government Efficiency (Doge). This has led to plummeting stock prices and protests targeting Tesla showrooms.

Boycott Reasons

• Musk's work for the Doge department, involving mass lay-offs, slashed foreign aid, and initially cutting support for veterans and investigations into Russia's abduction of Ukrainian children (although the latter two were later reversed).
• Musk blaming Ukraine for a cyberattack on X.
• Musk's close relationship with Trump, including a significant political donation and advising Trump during his second term.
• Trump's controversial actions during his second term, such as abandoning Ukraine in peace negotiations, threatening to seize Greenland, launching a trade war, and attempting to make Canada a US state.

Will Musk's Departure Help?

Experts have differing opinions. Some believe that Musk's departure from the White House could help to save Tesla's brand image and boost stock prices. However, others argue that the damage may already be done and that Tesla might need a complete break from Musk to rebuild trust.

Tesla's Financial Performance

Tesla's stock price has fallen significantly this year, although it has seen a slight recent uptick. The extent to which the boycotts are impacting Tesla's performance, compared to other factors like competition and an aging fleet, remains unclear.

Overall

While the possibility of Musk leaving his government role offers a potential solution, the long-term impact of this situation on Tesla remains uncertain and relies on various factors including consumer perception, successful innovation, and the overall ability to distance the brand from Trump's administration.