Remember when big business and politics were like oil and water? Those days are long gone! Corporate leaders now jump into political fights faster than kids into a swimming pool on a hot summer day. Sometimes this works out great, and sometimes it backfires in a big way.
Take electric cars, for example. They used to be the darling of the left. Driving a Tesla was like wearing a badge that said “I care about the planet.” But what happens when the leader of an electric car company sides with conservatives?
Tesla just reported some shocking news about its sales. The company delivered about 384,000 vehicles in the second quarter of 2025. That might sound like a lot, but it’s actually 14% lower than the same time last year. Even worse, this is the second quarter in a row that Tesla has seen sales drop.
The Trump Effect
Could this be the “Trump effect” at work? Elon Musk’s support for Donald Trump may have cost him dearly with his traditional customer base of left-leaning buyers. The Guardian reports that Tesla’s plummeting sales are partly due to “backlash over CEO Elon Musk’s political stance.”
When Trump and Musk had their public falling out in early June, Tesla lost about $150 billion in market value in a single day. Talk about expensive arguments!
President Trump didn’t hold back when criticizing Musk’s reliance on government money.
From ‘Breitbart’:
Trump, who has long been a vocal opponent of EV Mandates that would greatly benefit the Tesla CEO, took aim at Musk’s reliance on government subsidies, suggesting that without them, the tech mogul would “probably have to close up shop and head back home to South Africa.”
The president went on to say, “Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa. No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE.”
Ouch! That’s what we call a presidential burn. Trump went on to say that “Elon may get more subsidy than any human being in history, by far.” Is this a case of instant karma for Musk?
Numbers Don’t Lie
Despite the sales drop, it wasn’t all bad news for Tesla. The company’s stock actually rose about 5% after the announcement. Why? Because Wall Street thought the numbers would be even worse! Analysts had predicted around 387,000 deliveries, so Tesla didn’t miss by much.
Most of Tesla’s deliveries were its cheaper Model 3 and Model Y cars. The company delivered 373,728 of these models. Only about 10,394 deliveries were of other models, including the new Cybertruck.
Chinese electric car makers are giving Tesla a run for its money. They’re offering newer and cheaper models that make Tesla’s lineup look expensive and outdated. Tesla tried to fight back by refreshing its Model Y SUV, which began shipping in March.
American Jobs at Stake
While it’s easy to laugh at billionaires fighting on social media, there’s a serious side to this story. Tesla employs thousands of American workers. When sales drop, those jobs could be at risk.
The big question is whether Tesla can succeed without massive government subsidies. Free market fans have long argued that businesses should stand on their own without taxpayer help. Tesla might soon get a chance to prove it can do just that.
For now, Elon Musk’s electric empire is taking a hit. Maybe mixing politics and business isn’t the brightest idea after all. When you try to please everyone, you might end up pleasing no one. That’s a lesson that costs most business owners a lot less than $150 billion to learn!
Key Takeaways
- Tesla deliveries dropped 14% in Q2 2025, marking their second consecutive quarterly decline
- President Trump criticized Musk’s reliance on government subsidies, suggesting Tesla couldn’t survive without them
- Tesla’s traditional left-leaning customer base appears to be abandoning the company following Musk’s political positioning
- Despite the sales decline, Tesla’s stock rose 5% as Wall Street had expected even worse results
Sources: Breitbart, The Guardian
