Tesla Inc. CEO Elon Musk recently drew attention to historic government downsizing efforts, citing the former President Bill Clinton administration’s significant reduction of the federal workforce. This move has sparked controversy and protests outside Tesla showrooms across major U.S. cities.
What Happened
Musk acknowledged the National Partnership for Reinventing Government initiative, led by then-Vice President Al Gore, which cut more than 377,000 positions. The reference comes as protesters gather outside Tesla showrooms, expressing opposition to Musk’s involvement in current federal workforce reductions.
Protests and Backlash
Protesters have gathered in cities such as New York, Seattle, and various California locations, with some demonstrations drawing up to 100 participants. The controversy has begun affecting Tesla’s business interests, with some customers reconsidering their purchases. Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, hinted at plans to sell his Cybertruck after witnessing growing public hostility toward the brand.
Global Impact
The impact extends beyond U.S. borders, with Tesla’s German sales reportedly dropping 60% year-over-year in January. This decline is attributed to Musk’s public support for certain political parties. Rep. Ro Khanna (D-Calif.) highlighted the human cost of current federal job cuts, posting about “hard working Americans who voted for Trump and now are being fired from their jobs” with various government agencies.
Price Action
Tesla’s stock closed at $355.84 on Friday, down 0.028% for the day. In after-hours trading, the stock declined a further 0.52%. Over the past month, Tesla shares have fallen by 14.01%.
Key Takeaways
- Elon Musk referenced 1990s government layoffs amid Tesla showroom protests
- Protests have affected Tesla’s business interests, with some customers reconsidering purchases
- The controversy has had a global impact, with Tesla’s German sales dropping 60% year-over-year
- Tesla’s stock has declined over the past month, with a 14.01% fall in share price.