Markets beat Musk
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Profit crash forces world's richest man to think whether he must leave Trump to save Tesla
In 2018, Elon Musk launched his personal Tesla Roadster into space with a mannequin named Starman in the driver's seat, and a 'Don't Panic' sign on the dash. He could have used that sign now when things aren't going to plan. Tesla's Q1 sales are down 13%, and net income 71%. Used Teslas are 10.1% cheaper than last year, although used cars overall are 1% dearer. Meanwhile, sales of Tesla's biggest rival, BYD, have grown 60% in the same period. Tesla's stock is down to $238 from $480 in mid-Dec, and Musk has seen his own net worth dip below $300bn briefly, from $400bn-plus last Dec.
Something has surely hit the ceiling for Musk to announce he'll take a back seat at DOGE, where he's been slashing and burning entire federal departments to cut govt spending. 'Starting next month, May, my time allocation to DOGE will drop significantly,' he said on Tuesday. US law allows 'special govt employees' like Musk to work 130 days in a year, so his term doesn't end until late May. He's clearly retreating to save Tesla.
By endorsing Trump and MAGA, Musk has alienated environmentally conscious, liberal-minded Americans, who typically buy Teslas. In Europe also, he's riled prospective buyers by backing far-right candidates. Tariffs have meanwhile made his pricier Model S and Model X cars unsaleable in China. While BYD has announced lightning-fast charging and a new luxury car over the past few weeks, Musk, in his own words, has been 'stretched pretty thin. I have like 17 jobs.' Hence, the reboot. With $20bn worth of govt contracts, Musk can't go back to describing Trump as 'not the right guy…doesn't seem to have the sort of character that reflects well on the United States', but he'll have to change course for Tesla's sake.
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This piece appeared as an editorial opinion in the print edition of The Times of India.
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