Surprising Trump-Musk rift worsens a huge Tesla problem

Tesla CEO Elon Musk and President Donald Trump appear to be in the kind of chaotic relationship that social media lives to warn you about.

First the two seemed to be enjoying a business alliance-turned-bromance when Musk was invited to become a special government employee in January and spearhead the Department of Government Efficiency (DOGE).

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The pair cheerily appeared together in photographs as well as in the Oval Office, and they seemed to be harmoniously working together. Musk even donned a red baseball cap that read “Trump was right about everything,” which sent a pretty clear statement about the billionaire’s beliefs.

Related: Elon Musk latest message sends Tesla stock surging

Of course, things can change. And when Tesla’s  (TSLA)  sales plummeted 71% as reported during its first quarter earnings call, Musk’s tune began to do just that. The Tesla CEO said he would refocus on the EV business, and not long after, he announced he would be stepping away from DOGE entirely.

Soon after that shift, Musk suddenly started to take shots at Trump’s “big beautiful bill” on X, first disagreeing with it and then seemingly escalating the issue to an all-out war against the president.

Now the two have been trading barbs and threats alike, and while it looks like they’re having some sort of weird breakup spat that’s bristling with resentment, the whole thing is having a bad effect on a situation that Musk promised he would work to repair.

Tesla’s brand reputation continues to struggle 

Tesla’s reputation has taken a beating this year. Musk’s involvement with President Trump and the government rubbed many the wrong way, leading the stock to tank in mid-March when Musk was heads down on the DOGE project.

What followed was a rash of people either demonstrating outside Tesla dealerships, vandalizing them, or both. Tesla owners, uncomfortable at being yelled at on the streets, started to offload their cars. 

Related: Forget tariffs, automakers face an even bigger threat from China

Meanwhile, Tesla sales are dropping fast in key markets such as Europe and California.

“Tesla’s sales in Europe dropped 49% year-over-year in April to 7,261 vehicles, according to the European Automobile Manufacturers’ Association. Meanwhile, total EV sales in the region rose 34%. So far, Tesla’s Europe unit volume is down nearly 40% through the first four months of this year,” TheStreet’s Todd Campbell reports.

The Trump-GOP rift could hurt Tesla even more

Musk’s public spat with Trump, including posting the whole thing on social media rather than having private conversations with the president, comes off as attention-seeking and inappropriate for a person of his status.

And while the president has responded more or less in kind, it’s really Tesla that will suffer further, as Trump is known for his outbursts, and they don’t stand out that much from his regular behavior.

Tesla, however, had already been beaten down by Musk’s involvement with the GOP. While Musk is clearly trying to separate himself from Trump with these moves, the way he’s handling them reflects poorly on his plans to reinvigorate the EV brand. It’s exactly the move Tesla didn’t need at this moment.

Trump, in the meantime, has decided he has bigger things to focus on, telling CNN today, “I’m not even thinking about Elon. He’s got a problem. The poor guy’s got a problem.”

Related: Analyst says Tesla faces one big beautiful hit from Trump bill

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