MW A 'Tesla Takedown' is coming this weekend. Will it rock Tesla?

By Claudia Assis

Protests at Tesla were 'inconceivable' a few short years ago. It 'indicates how far the Tesla brand has fallen.'

Activists are pushing for more protests against Elon Musk's involvement in politics, as calls for the Tesla Inc. chief executive to refocus on the company continue to grow and the backlash against DOGE has been a major drag on the EV maker's stock.

The newest "Tesla Takedown" in the U.S. and elsewhere is being billed as a "Day of Action" on Saturday, listing protests in places as far apart as Vancouver, Canada, and Hamburg, Germany, and in major cities such as New York and London, with more protests scheduled for early April in other European cities.

It's the latest in a string of demonstrations that have rocked Tesla $(TSLA)$ locations in recent weeks. The organizers say the protests will be peaceful, and that they "oppose violence, vandalism and destruction of property."

Musk's actions with the so-called Department of Government Efficiency and other aspects of the political sphere, including voicing support for far-right parties in Europe, have been followed by protests at Tesla facilities, vandalization of Tesla vehicles and charging stations, and altercations between protesters and Tesla owners.

Investors fear that Musk has gone too far in alienating Tesla's customer base with his politics, and that the company will struggle to rebrand. The stock has lost about a third of its value this year, and is off about 40% from its December record close.

A year or so ago, the idea that people would be protesting outside Tesla stores would be "inconceivable," said Tim Calkins, a marketing professor at Northwestern University's Kellogg School of Management. It "indicates how far the Tesla brand has fallen," he said.

"I don't know if we've ever seen a brand shift quite this quickly and become quite so polarizing," Calkins said. It is unclear if Tesla will be able to pivot and become a broadly acceptable brand again, even if it brings new products to market. For new technology such as robotaxis and robots, the company likely would have to consider launching a new brand, he said.

Alexander Edwards, president of marketing-research firm Strategic Vision, said that the backlash against Tesla seen so far sends "a very clear message" that Musk cannot continue to alienate consumers "and expect sales to happen."

An online platform that organizers are using to coordinate the protests accuses Musk of "destroying" democracy, and using his Tesla fortune to do it. The demonstrators are also coordinating the protests on social media, with Saturday's efforts appearing to be the biggest yet.

The platform, ActionNetwork.org, lists one main sponsor for the "Tesla Takedowns," a Washington-state group calling itself Troublemakers.

MarketWatch has reached out to the group, but it did not immediately return a request for comment about the Tesla protests. The group's site describes it as "an ever-growing community of people who are committed to taking action for life on Earth."

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U.S. Attorney General Pam Bondi has labeled vandalism against Tesla property as "nothing short of domestic terrorism," vowing to continue to investigate and impose "severe consequences on those involved in these attacks."

And FBI Director Kash Patel said in a tweet earlier this week that the agency has been investigating "the increase in violent activity toward Tesla," and taken steps to "crack down and coordinate our response."

Tesla did not return requests for comment. On X, Musk has claimed that "many" involved in "these 'takedowns' have also sold Tesla stock short, so they benefit financially from a drop in the stock." In the past, Musk often blamed short-sellers for Tesla's woes.

The company is expected to unveil first-quarter sales in early April. Tesla does not report sales by region or by specific model; instead, it lists Model 3 and Model Y combined production and sales data, along with "other models," without further breakdowns.

Third-party agencies have signaled Tesla sales declines, the latest of which was in Europe - for a second straight month.

To be sure, Tesla - and Tesla's stock - has bounced off low points before. In late 2017, Musk described a "production hell" as the company struggled to reach volume production of its cheaper Model 3s, then a new EV. In 2018, he said he had been working 120-hour weeks, and sometimes would not leave the factory for days on end - including on his birthday.

This time feels different, however, due to the political backdrop, said Jay Woods, chief global strategist at Freedom Capital Markets.

Read also: Trump just bought a Tesla, but many other owners are selling their Musk-made EVs. What's going on?

"The longer-term prospects seem to be murky. Not bad, but tough to see given the current climate," he said. Musk's focus seems to be elsewhere, and although his recent town-hall meeting with employees may have been a nice touch, Wall Street is still "waiting for results on autonomous driving."

"While we wait, sales are falling, and he is alienating some of his loyal user base given his political involvement," Woods said. He warned investors, however, to "never bet against Elon Musk."

Musk donated $291 million in support of Trump and other Republican candidates before the November election, which a Tesla analyst called a "bet for the ages."

The steep financial support and proximity to power was expected to help smooth Tesla's path into self-driving cars and provide other benefits to the EV maker and Musk's other companies, including SpaceX.

And while Musk's rocket company may be in line for billions of dollars in government contracts, a rebranding of Tesla may be harder to pull off.

President Donald Trump and Fox News host Sean Hannity bought new Teslas in support of Musk earlier this month, and supporters of Trump posted on X their intention to back Tesla, suggesting that the EV maker could pick up some new buyers. Plenty more owners have sold their Teslas.

"Republicans certainly might come to the aid," Strategic Vision's Edwards said. But while Trump and Hannity can afford to add a Tesla to their fleet, many others may not. Most people can financially support a cause they believe in, but "when you talk about a car you are at a different level," Edwards said.

The least-expensive Tesla model starts at $35,000.

Tesla could also have a hard time making inroads in red states because their stores and infrastructure are largely located in more liberal, urban areas.

And while Tesla could, in theory, win back Democratic buyers, which was most of its base, there are "way too many other terrific options" in EVs right now, including luxury vehicles from European makers such as Mercedes Benz (XE:MBG) and BMW (XE:BMW), to say nothing of hybrid options, he said.

Musk needs to reconnect with the base of buyers, disconnect from his DOGE work, or he needs step down from leading Tesla, Edwards said.

"There's a way out of this, but it requires a little bit of humility."

-Claudia Assis

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March 28, 2025 09:01 ET (13:01 GMT)

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