Trump Defends Tesla and Elon Musk, Denounces Boycotts as "Illegal"

President Trump supports Tesla and Elon Musk, calling boycotts against the company "illegal." Protests rise, Tesla sales drop—what does this mean for the company? Read more.

Donald Trump has once again made headlines after publicly endorsing Tesla and its CEO, Elon Musk. During a White House meeting, the president announced plans for his administration to purchase Tesla vehicles for government use while condemning the ongoing protests and boycotts against the company, calling them “illegal.”

His remarks come at a time of growing public discontent over Musk’s increasing political involvement, particularly after his appointment as the head of the Department of Government Efficiency (DOGE). Many activists fear that his presence in the administration could strengthen corporate influence over politics.

Protests against Tesla have erupted across the United States and beyond. In Portland, more than 350 demonstrators gathered outside a Tesla showroom, urging a boycott of the brand. Meanwhile, in New York, nine protesters were arrested for public disturbances. The backlash has extended overseas as well—Tesla sales in Europe and Australia have taken a hit, and incidents of vandalism targeting Tesla vehicles and dealerships have become more frequent. In Germany, new Tesla registrations plunged by 76% in February 2025, a decline widely attributed to consumer dissatisfaction with Musk’s political stance.

The financial markets have responded to Tesla’s volatile position. Following Trump’s re-election, Tesla’s stock initially surged by 14% but later plummeted by 15% as investors grew concerned about Musk’s divided attention between government responsibilities and corporate leadership. Analysts warn that if Musk fails to refocus on Tesla, the company’s long-term prospects could suffer.

One of the few bright spots for Tesla amid the turbulence is its expansion in the U.S. The company recently announced plans to build a new “megafactory” in Texas, expected to create around 1,500 jobs and bolster its market position. However, experts remain skeptical about whether this move will be enough to offset the impact of declining demand in Europe and Australia, as well as ongoing boycotts.

The question of how Musk’s political engagement will shape Tesla’s future remains unanswered. So far, his close ties with Trump appear to be causing more trouble than benefit for the company. If tensions continue to rise, Tesla may face further sales declines and reputational damage that could prove far more damaging than any boycott alone.

Source: automotiveworld.com