U.S. President-elect Donald Trump greets Tesla CEO and X proprietor Elon Musk throughout a rally the day earlier than Trump is scheduled to be inaugurated for a second time period, in Washington, U.S., January 19, 2025.
Brian Snyder | Reuters
Tesla’s fourth-quarter earnings report lands simply over every week after President Donald Trump started his second time period within the White Home, with Elon Musk proper by his aspect.
Now that the Tesla CEO is firmly planted in Washington, D.C., in a high-profile advisory position, shareholders within the electrical automobile maker have some questions.
On the forum Tesla makes use of to solicit investor inquiries upfront of its earnings calls, greater than 100 poured in from shareholders about Musk’s politics, together with his official position at Trump’s Division of Authorities Effectivity (DOGE) and his endorsement of far-right candidates.
“How a lot time does Elon Musk dedicate to rising Tesla, fixing product points, and driving shareholder worth vs. his public engagements with Trump, DOGE, and political actions?” one retail investor requested, including, “Do you imagine he is offering Tesla the main target it wants?”
Along with contributing $270 million to assist Trump and different Republican candidates and causes, Musk spent weeks on the marketing campaign path throughout the fourth quarter working to propel Trump again into the White Home. After Trump’s election victory, Musk then spent appreciable time distant from Tesla’s manufacturing unit ground at Trump’s Mar-a-Lago resort in Florida.
One of many top-voted questions on Musk requested how a lot time he intends to spend “on the White Home and on authorities actions vs effort and time devoted to Tesla.”
Musk and Tesla did not instantly reply to a request for remark.
Musk has additionally concerned himself in German politics, giving a full-throated endorsement of the nation’s far-right, anti-immigrant occasion AfD (Various für Deutschland) in December forward of the February election.
In line with analysis and consulting agency Model Finance, the worth of Tesla’s brand fell by 26% final yr, with components together with Musk’s “antagonism,” Tesla’s getting old lineup of EVs and extra. The researchers discovered that fewer shoppers would suggest or take into account shopping for a Tesla now than in earlier years.
Throughout public remarks following final week’s inauguration, Musk repeatedly used a gesture that was considered by many historians and politicians as a Nazi salute. Ruth Ben-Ghiat, whose scholarship has centered on fascism, described it as “a Nazi salute and a really belligerent one,” whereas neo-Nazis praised Musk for his antics.
A shareholder on Say requested, “Will you apologize for the misunderstanding that occurred whenever you made the hand gesture thanking of us for his or her assist. It will go a great distance together with your traders and the American public at massive. Thanking you upfront Elon!”
In response to the criticism, Musk mentioned anybody calling the salute a hateful gesture was pushing a “hoax.” However after that, he engaged in Nazi-themed phrase play on X, prompting the Anti-Defamation League to rebuke him, writing it’s “inappropriate and offensive to make gentle” of the “singularly evil” Holocaust. And Musk later appeared by way of video at a rally for the AfD in Halle, Germany.
Some traders requested whether or not Tesla had “gross sales misplaced attributable to political actions of Elon,” how the corporate plans “to answer Musk’s now notorious Nazi salute,” and the way Tesla “is addressing the damaging impacts of Elon’s public views and actions.”
However Tesla is beneath no obligation to carry any of those matters up on the earnings name. Forward of the third-quarter name in October, traders had a whole lot of questions and concerns about related points relating to Musk’s involvement in politics, although that was earlier than Trump’s election victory.
Trump was by no means talked about on that decision.
