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Tesla's sales plummeted 13% in Q1 2025, and European sales halved in April 2025, due to political backlash and consumer alienation.
SpaceX faces technical setbacks, including recent Starship test failures, and reputational hits due to Musk's political affiliations.
Musk's return to private-sector leadership signals a push to stabilize his companies, but rebuilding trust requires addressing consumer backlash and delivering on promises.
Elon Musk’s exit from the Department of Government Efficiency (DOGE) is a timely shift back to his core ventures—Tesla, SpaceX, and X—after a turbulent political stint. His role as Trump’s cost-cutter, claiming $175 billion in savings, sparked fierce backlash, with Tesla’s sales plummeting 13% in Q1 2025 and SpaceX facing reputational hits. While Musk pledges to focus “24/7” on his businesses, can he reverse the damage and restore investor and consumer trust?
Tesla’s challenges are stark. The Axios Harris 100 poll ranked Tesla 95th among 100 brands, down from 33rd in 2024, citing low trust and ethics scores. European sales halved in April 2025, with only 512 vehicles registered in the UK, a 62% drop. Protests and vandalism at Tesla dealerships, fueled by Musk’s right-wing affiliations, have alienated liberal consumers. Wedbush analyst Dan Ives noted a “black cloud” over Tesla’s brand, compounded by an aging lineup and competition from Chinese EV makers like BYD. Yet, Musk’s robotaxi rollout in Austin, announced for June 2025, aims to reinvigorate growth. Success hinges on delivering unsupervised autonomy, but past delays and safety concerns raise doubts.
SpaceX, valued at $350 billion, faces its own hurdles. Recent Starship test failures, including a March 2025 breakup over the Indian Ocean, have drawn scrutiny. While Starlink secured maritime and aviation deals in Saudi Arabia, Ontario canceled a $68 million contract, and Italy halted a $1.5 billion deal over Musk’s political ties. The 2025 Axios Harris poll ranked SpaceX 86th, down from 48th, with weak citizenship scores. Musk’s return to Starbase, Texas, signals a push to stabilize SpaceX, but technical setbacks and geopolitical concerns could undermine its momentum.
Elon Musk’s political retreat, after spending $300 million on Trump’s campaign and a failed $25 million Wisconsin judicial race, responds to investor pressure. Tesla’s stock surged 7% post-exit as Musk vowed to prioritize his companies, but Wall Street remains wary. CNN reports Tesla sold only 6,400 Cybertrucks in Q1 2025, far below the 250,000 annual target. Musk’s commitment to lead Tesla for five more years aims to reassure investors, but rebuilding trust requires addressing consumer backlash and delivering on promises like affordable EVs.
Also Read: Tesla Stock Up 2% After Musk Quits DOGE and Reveals Driverless Model Y Update
The path forward demands strategic focus. Tesla must refresh its lineup and counter Chinese competitors, while SpaceX needs successful Starship launches to maintain NASA and investor confidence. Musk’s reduced political spending and X’s operational fixes, post a major outage, are steps toward stability. However, public sentiment remains a hurdle—58% of Americans view Elon Musk unfavorably. By leveraging innovation, like xAI’s advancements and Tesla’s robotaxis, Musk could shift the narrative. The question is whether his technological vision can outshine the political shadow, restoring Tesla and SpaceX as symbols of progress rather than controversy.
