Tesla investors uneasy as Musk's political ties raise concerns
Tesla shareholders are eager to get answers from Elon Musk about his political engagement, specifically his advisory role in Donald Trump's administration and controversial actions during the presidential inauguration. Investors are concerned about how the CEO's activities might affect the company's value.
After Donald Trump was sworn in for his second presidential term, Elon Musk assumed a high advisory position in the Department of Government Efficiency (DOGE). This event coincided with the release of Tesla's financial report for the fourth quarter.
Before this report's release, investors could ask questions about the company's future. Musk's recent decisions seem to be stirring controversy. More than a hundred company shareholders have questioned the billionaire's political involvement.
Particularly notable is that the CEO donated $270 million to support Trump's campaign and other Republican candidates. In the last quarter of 2024, Musk was actively involved in the election campaign, spending considerable time at the Mar-a-Lago estate.
Controversies surrounding the CEO's actions
Musk has also stirred controversy internationally. In December, he openly supported the far-right AfD party in Germany before the upcoming elections. According to Brand Finance, Tesla's brand value dropped by 26 percent last year due to Musk's antagonistic position.
During the inaugural ceremonies of Trump's new presidency, Musk made a gesture that some historians and politicians interpreted as a Nazi salute. Ruth Ben-Ghiat, a fascism expert, described it as a "Nazi salute of a very aggressive nature." In response to the criticism, Musk called these accusations a "hoax."
Will Musk lose due to the controversial gesture?
Investors are concerned about the potential impact of Musk's political activities on Tesla's sales performance. They want to know about specific sales losses from his political actions and the company's strategy to respond to the CEO's controversial statements.
During the previous earnings call in the third quarter of 2024, this topic was not addressed despite numerous questions about Musk's political involvement. Tesla is not obligated to address these issues during the upcoming earnings conference.
Bill Gates criticizes Musk's political involvement
Other criticisms of Musk also exist. In an interview with The Times, Bill Gates definitively distanced himself from comparing himself with the Tesla and SpaceX owner. The Microsoft co-founder highlighted fundamental differences between them, especially regarding political involvement.
Gates expressed concern about the possibility of foreign billionaires influencing electoral processes. He noted that "in the USA, foreigners cannot donate money" for political purposes, suggesting that other countries should consider implementing similar rules.
Gates criticizes Musk's far-right sympathies
The Microsoft co-founder criticized Musk for supporting radical political movements. Gates deemed Musk's support for the German AfD party and his criticism of Nigel Farage for not being right-wing enough unacceptable.
Despite Musk's undeniable intelligence, he observed that his actions focus on "populist incitement" rather than constructive use of his potential. He also expressed concern about the growing political polarization and the spread of hatred towards foreigners.
Controversial support for AfD
Elon Musk actively engaged in the German election campaign, appearing online during the AfD inauguration. He called this party "Germany's greatest hope" and urged Germans to let go of guilt over the past.
Reports from the "Financial Times" indicate that Musk's actions extend beyond the German political scene. The Tesla owner was also reportedly involved in British politics, supporting actions against the British Labour Party and its leader.
