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Are Tesla protests working? Elon Musk’s company is on the verge of historic collapse

Are Tesla protests working? Elon Musk’s company is on the verge of historic collapse

  • 18.03.2025 10:02
  • nj.com
  • Keywords: Tesla, Elon Musk, JPMorgan, Trump

Protests against Elon Musk and Tesla have surged, with critics targeting his role in government and business practices. Despite Trump's endorsement, Tesla faces declining sales and negative public sentiment, with analysts forecasting a sharp drop in deliveries this quarter.

Tesla NewsTesla ReportsTSLAsentiment_dissatisfiedJPM/PJsentiment_dissatisfied

Estimated market influence

Tesla

Tesla

Negativesentiment_dissatisfied
Analyst rating: Neutral

Protests and negative public opinion impacting Tesla's brand value.

Elon Musk

Negativesentiment_dissatisfied
Analyst rating: N/A

His political involvement affecting business operations.

JPMorgan

Negativesentiment_dissatisfied
Analyst rating: —

Analysts downgrading Tesla's performance forecasts.

Trump

Positivesentiment_satisfied
Analyst rating: N/A

Political support from Trump may influence public perception, but risks of negative backlash exist.

Context

Analysis of Business Insights and Market Implications

Key Facts and Data Points

  • Date Published: March 18, 2025
  • JPMorgan Analysts' Forecast:
    • Tesla expected to report its lowest number of deliveries since Q3 2022.
    • Predicted decline of 8% from Q1 2024.
  • Protests at Tesla Dealerships:
    • Ongoing for several weeks.
    • Police reported multiple arrests related to the protests, nicknamed "Tesla Protests."
  • Consumer Sentiment Survey:
    • 53% of respondents have a negative view of Elon Musk.
    • Only 35% express positive sentiment toward the billionaire.

Market Trends and Business Impact

  • Declining Consumer Confidence: The protests and associated negative sentiment have hurt Tesla's brand image, potentially impacting sales and stock performance.
  • Analyst Downgrades: JPMorgan, Goldman Sachs, and UBS have all downgraded their delivery forecasts for Tesla, signaling investor concern.

Competitive Dynamics

  • Traditional Automakers: Competitors like Ford and GM may benefit if Tesla's reputation continues to erode.
  • Political Influence: Elon Musk's alignment with President Trump has created significant backlash, with critics viewing it as a "divisive new role in government."

Strategic Considerations

  • Trump's Support: The President has publicly endorsed Tesla, even planning to purchase a new vehicle to show support. However, this could further polarize consumer opinions.
  • Regulatory Environment: Shifts in regulatory policies under Trump's administration may pose challenges for Tesla, particularly if the political climate becomes more hostile to innovation.

Long-Term Effects and Regulatory Implications

  • Brand Reputation: The ongoing protests and negative sentiment could have long-term effects on Tesla's brand loyalty and market share.
  • Investor Sentiment: Continued downgrades from major banks may lead to sustained pressure on Tesla's stock price.
  • Political Risks: Musk's involvement in politics may attract increased regulatory scrutiny, potentially impacting the company's operations and growth strategies.

Conclusion

The current situation presents significant challenges for Tesla, with declining deliveries, negative consumer sentiment, and political risks overshadowing its market position. While Trump's support could offer some stability, the long-term implications of these factors remain uncertain.