How Elon Musk’s political gambit could tarnish his legacy at Tesla

Tech leaders often brand themselves as “disruptors”—and few fit that label more snugly than Elon Musk. In the three months since joining Donald Trump in the White House following Trump’s election, Musk has certainly disrupted Washington. Now, reports suggest Musk is preparing to exit his government post, having led the Department of Government Efficiency (DOGE), and overseen sweeping cuts across numerous federal agencies.

Musk’s time in government may be short-lived, but his political legacy is already sealed. As the architect of aggressive budget slashes, his tenure has sparked backlash that could linger far beyond the halls of power—and into the boardrooms of his private ventures.

“Musk stepping out the political firing line might calm the headlines, but the brand damage is already done,” says social media expert Matt Navarra. “The internet doesn’t forget, and neither do his investors.” Navarra believes Musk’s recent behavior—what he calls “Musk’s political antics”—has become a heavy drag on the entrepreneur’s public image. Tesla’s stock has plummeted nearly 30% this year, while the recent merger of X, the social platform Musk acquired in 2022, with his AI startup xAI, has drawn ridicule for its apparent lack of financial return.

At the heart of the reputational and financial downturn is a growing perception that Musk has prioritized political theater over operational focus. His reputation as a visionary founder has dimmed as his companies have stumbled. “The Musk DOGE initiative and spending 110% of his time with the Trump administration in the White House/Palm Beach since January inauguration has been exacerbating and so troubling for investors and Tesla’s stock,” says Dan Ives, managing director and senior equity research analyst at Wedbush Securities.

Though Ives remains optimistic about Tesla’s long-term potential, he acknowledges the fallout from Musk’s high-profile role in government austerity. “Tesla has unfortunately become a political symbol because of Musk, and this is a very bad thing for the future of this technology stalwart,” Ives says. “With major protests erupting globally at Tesla dealerships, Tesla cars being keyed, and a full brand crisis tornado now underway, this has turned into a life of its own and cast a dark black cloud over Tesla’s stock.”

Navarra notes that this moment is particularly damaging because Musk’s companies were once buoyed by his persona. “Tesla, X, and even SpaceX all used to benefit from his cult of personality, but now I think that charisma is curdled,” he says. “I think there’s a growing gap between Musk the innovator and Musk the provocateur, and it’s hard for any brand to thrive when its CEO behaves like a chaos agent on the timeline.”

So far, Musk appears unmoved—or unaware—of the toll his political turn has taken on his empire. (He did not respond to a request for comment sent to both his government and Tesla email addresses.) But Navarra warns the consequences may be long-lasting. “Even if he fades from the political narrative, his digital footprint stays loud,” he says. “Every tweet, every jab at the media, or every partisan swipe, it all feeds into how the public sees Tesla and X. He’s not just shaping the narrative, he is the narrative, and the longer that continues, the harder it becomes for his companies to tell a different story.”

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