U.S. President-elect Donald Trump greets Tesla CEO and X owner Elon Musk during a rally the day before Trump is scheduled to be inaugurated for a second term, in Washington, U.S., January 19, 2025.
Brian Snyder | Reuters
Tesla’s fourth-quarter earnings report lands just over a week after President Donald Trump began his second term in the White House, with Elon Musk right by his side.
Now that the Tesla CEO is firmly planted in Washington, D.C., in a high-profile advisory role, shareholders in the electric vehicle maker have some questions.
On the forum Tesla uses to solicit investor inquiries in advance of its earnings calls, more than 100 poured in from shareholders about Musk’s politics, including his official role at Trump’s Department of Government Efficiency (DOGE) and his endorsement of far-right candidates.
“How much time does Elon Musk devote to growing Tesla, solving product issues, and driving shareholder value vs. his public engagements with Trump, DOGE, and political activities?” one retail investor asked, adding, “Do you believe he’s providing Tesla the focus it needs?”
In addition to contributing $270 million to help Trump and other Republican candidates and causes, Musk spent weeks on the campaign trail during the fourth quarter working to propel Trump back into the White House. After Trump’s election victory, Musk then spent considerable time far away from Tesla’s factory floor at Trump’s Mar-a-Lago resort in Florida.
One of the top-voted questions about Musk asked how much time he intends to spend “at the White House and on government activities vs time and effort dedicated to Tesla.”
Musk and Tesla didn’t immediately respond to a request for comment.
Musk has also involved himself in German politics, giving a full-throated endorsement of the country’s far-right, anti-immigrant party AfD (Alternative für Deutschland) in December ahead of the February election.
According to research and consulting firm Brand Finance, the value of Tesla’s brand fell by 26% last year, with factors including Musk’s “antagonism,” Tesla’s aging lineup of EVs and more. The researchers found that fewer consumers would recommend or consider buying a Tesla now than in previous years.
During public remarks following last week’s inauguration, Musk repeatedly used a gesture that was viewed by many historians and politicians as a Nazi salute. Ruth Ben-Ghiat, whose scholarship has focused on fascism, described it as “a Nazi salute and a very belligerent one,” while neo-Nazis praised Musk for his antics.
A shareholder on Say asked, “Will you apologize for the misunderstanding that occurred when you made the hand gesture thanking folks for their support. It would go a long way with your investors and the American public at large. Thanking you in advance Elon!”
In response to the criticism, Musk said anyone calling the salute a hateful gesture was pushing a “hoax.” But after that, he engaged in Nazi-themed word play on X, prompting the Anti-Defamation League to rebuke him, writing it is “inappropriate and offensive to make light” of the “singularly evil” Holocaust. And Musk later appeared via video at a rally for the AfD in Halle, Germany.
Some investors asked whether Tesla had “sales lost due to political activities of Elon,” how the company plans “to respond to Musk’s now infamous Nazi salute,” and how Tesla “is addressing the negative impacts of Elon’s public views and activities.”
But Tesla is under no obligation to bring any of these topics up on the earnings call. Ahead of the third-quarter call in October, investors had a lot of questions and concerns about similar issues regarding Musk’s involvement in politics, though that was before Trump’s election victory.
Trump was never mentioned on that call.
