Protests against Elon Musk and Tesla, stemming primarily from Musk’s involvement with the Trump administration, have escalated internationally to the point where the company now officially considers them a business risk. Tesla disclosed this escalation in its latest filing with the Securities and Exchange Commission (SEC), updating the wording of its previously general risk assessment statement.
In earlier filings, Tesla broadly acknowledged that third-party criticism—sometimes exaggerated or unfounded—could negatively impact its brand image, financial performance, and ability to raise capital. As of Wednesday morning, the company’s legal team included specific references to increasing protest activity, noting that some incidents have involved violence or direct threats to company assets and personnel. Tesla now explicitly warns that these anti-Musk demonstrations could damage the perception of its brand, depress sales, and complicate future fundraising efforts.
This modification in official paperwork reflects the growing significance of public backlash related to Musk’s political stances, which notably intensified after he aligned more closely with former President Trump. Although Musk himself claimed on a recent earnings call that the protesters are being paid, he provided no evidence to substantiate that assertion.
While previously it had been challenging for analysts to quantify the impact of these issues on Tesla’s bottom line, recent financial statements show a pronounced drop in the company’s automotive revenue and profit, reflecting potential fallout from the protests and associated negative sentiment. Tesla executives acknowledged during the earnings call that the protests have caused measurable harm to the business.
A statement from Tesla Takedown, an organization that has coordinated many of these global protest actions, highlighted the significance of being named as an official risk by Tesla. They declared the move a validation of their effectiveness, asserting that “When the truth becomes a threat, you know you’re making an impact,” and suggesting continued momentum for their campaign.
