Will Musk's involvement in politics affect the company's business operations?

In terms of brand image, Tesla's target customer group often pays more attention to issues such as environmental protection and technological ethics, and tends to lean towards the Democratic Party. Musk's alliance with Trump and some political actions have led some consumers to have a negative perception of the Tesla brand. If he openly supports far right political forces in Europe, it has led to a significant decline in Tesla's sales in European markets such as Germany and France. According to survey data from investment bank Stifel, Tesla's "net favorability" is close to its lowest point in history.

From the perspective of market sales, since Trump took office, Tesla's stock price has fallen by a cumulative 16.6%, and its market value has evaporated by approximately $227.3 billion. In January 2025, Tesla's registration volume in the United States decreased by 10.8% compared to the same period last year, and in California it decreased by 12%. In the EU region, sales in France decreased by 63% and in Germany by 59%.

In terms of talent attraction, many technical experts and engineers attach great importance to the ethical issues of AI technology development, and Musk's political activities may make some key employees and potential recruitment targets cautious about Tesla. This will put Tesla at a disadvantage when competing with other tech companies for talent, affecting technological innovation and business development.

From the perspective of resource and energy allocation, Musk led the "Government Efficiency Department" to push for a reduction in the size of the federal government and proposed the acquisition of OpenAI. These political and commercial activities make it difficult for him to fully devote himself to Tesla's operational management. Oppenheimer analysts say Musk's distraction is part of the reason for Tesla's stock price decline.

In addition, Musk's political actions have had a significant impact on SpaceX to some extent. In terms of policy and cooperation opportunities, after Trump's victory, SpaceX and its Starlink business have gained more opportunities to cooperate with the government. Trump holds a supportive attitude towards commercial aerospace, and SpaceX may receive more government orders and policy support, which is beneficial for business expansion and technology research and development.

But this decision poses costs and risks for SpaceX's supply chain adjustments, which may affect production schedules and deliveries in the short term, and may also trigger other geopolitical issues, posing potential risks to the company.

From the perspective of international market expansion, political actions may affect SpaceX's image and cooperation in the international market. In international space cooperation, political factors are sensitive. If political actions cause concerns or dissatisfaction in other countries or regions, it may hinder SpaceX's cooperation with international partners and affect its global market layout.

In addition, after Musk acquired X, bringing his political views and style into the platform caused dissatisfaction among some users, resulting in user churn and decreased activity. Meanwhile, political controversies may also attract users with similar political stances, increasing the platform's political color and topicality.

The impact on other innovative businesses is also significant. For example, Neuralink and The Boring Company are not obviously affected directly by politics at present, but from the perspective of overall brand image and resource allocation, the public opinion disturbance and energy dispersion caused by Mask's politics may indirectly affect the development progress and market recognition of these businesses.

In summary, Musk's involvement in politics has both positive and negative impacts on the business operations of his company. The positive aspects are mainly reflected in the government support and cooperation opportunities that may be obtained under specific policy environments; The negative aspects are reflected in various aspects such as brand image, market sales, and talent attraction. In the future, if Musk continues to be deeply involved in politics, he needs to be more cautious in balancing political and commercial interests, reducing negative impacts, and ensuring the stability and sustainable development of the company's commercial operations.