U.S. President-elect Donald Trump’s Inauguration Brings New Scrutiny to Tesla CEO Elon Musk’s Role in the White House
As Tesla’s fourth-quarter earnings report is set to be released, just over a week after President Donald Trump began his second term in the White House, investors are scrutinizing the role of CEO Elon Musk in the new administration. Musk, who has been a major supporter of Trump, has been involved in various political activities, including running a super PAC and donating millions of dollars to Republican candidates and causes.
According to a report by Reuters, more than 100 investor inquiries have been submitted to Tesla ahead of the earnings call, with many of them focusing on Musk’s role in Trump’s Department of Government Efficiency (DOGE) and his endorsement of far-right candidates. Several investors have expressed concerns about how much time Musk will devote to growing Tesla, solving product issues, and driving shareholder value versus his public engagements with Trump and other political activities.
Musk’s involvement in German politics has also raised eyebrows, with his endorsement of the far-right, anti-immigrant party AfD (Alternative für Deutschland) in December ahead of the February election. The brand value of Tesla dropped by 26% last year, with factors including Musk’s “antagonism,” Tesla’s aging lineup of EVs, and more, according to research and consulting firm Brand Finance.
On the company’s forum, investors have also asked about the potential impact of Musk’s recent hand gesture, which was viewed by many as a Nazi salute, on the company’s image and sales. In response, Musk denied that the gesture was a hateful symbol, but the Anti-Defamation League (ADL) rebuked him, stating that making light of the Holocaust is inappropriate and offensive. Musk later appeared via video at a rally for the AfD in Halle, Germany.
As a result of these controversies, Tesla investors are seeking answers to questions like how much time Musk will dedicate to Tesla versus his public engagements, whether his actions will impact the company’s sales, and how Tesla will respond to his controversial gestures and political views.
