Public sentiment turns against Musk and Tesla as the company’s profits nosedive and political controversy swirls.
Tesla’s Q1 2025 earnings report has revealed a 71% collapse in profits, but the financial downturn isn’t the only challenge the company is facing. A new CNBC poll shows that Elon Musk’s public approval is plummeting, reflecting mounting discontent over both his political activity and Tesla’s performance.
Musk’s Image Problem Deepens
The CNBC All-America Economic Survey, conducted April 9–12, found that 50% of Americans view Elon Musk negatively, while only 36% have a favorable opinion of the billionaire CEO. The remaining 16% were neutral.
Tesla itself fared no better. The survey reported that 47% of respondents had a negative view of the EV manufacturer, compared to 27% positive, and 24% neutral.
Analysts say the numbers highlight a shift in how Musk — once admired as a visionary — is increasingly seen as a polarizing political figure rather than a neutral entrepreneur.
Financial Setbacks Compound Reputational Risks
Tesla’s first quarter profits fell by 71%, a sharp reversal from its record-setting performance in recent years. Revenue also dropped by 9% year-over-year, intensifying concern over demand weakness, supply chain fragility, and broader macroeconomic instability.
In its earnings statement, Tesla cited:
- “Rapidly evolving trade policy”
- “Geopolitical volatility”
- “Shifting consumer demand”
“This dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near term,” the report stated.
Tesla Stock Slides Over 40% in 2025
Amid disappointing earnings and souring sentiment, Tesla shares have lost over 40% of their value year-to-date. The company has also faced a string of vandalism attacks on its charging stations and showrooms, highlighting growing public backlash and security risks.
Musk acknowledged the slide during a recent event hosted by his crypto-advocacy group, America PAC:
“My Tesla stock — and the stock of everyone who owns Tesla — has roughly halved,” he told attendees.
Political Ties Add to Volatility
Elon Musk’s appointment as the head of the Department of Government Efficiency (DOGE) under President Trump’s second term has drawn criticism. His increasing political visibility — especially in crypto and deregulation — is now perceived as a potential liability for Tesla’s brand.
Industry watchers believe this politicization could:
- Alienate liberal-leaning consumers
- Trigger activist resistance
- Undermine Tesla’s appeal in ESG-focused investment circles
Tesla Faces Critical Juncture
As Tesla navigates declining financials and an increasingly politicized CEO, the company may face long-term brand erosion unless it can rebuild trust with both investors and the public.If current trends hold, Tesla’s challenge will not just be engineering better vehicles — it will be managing Musk’s growing influence over its identity.
