On Friday, Tesla sent a strongly worded letter to the U.S. government warning that the president’s tariffs would invite retaliation and damage to the entire auto industry. The real question is—who wrote it?
Strangely, the letter was unsigned, though perhaps that’s no mystery. After all, Tesla’s CEO, Elon Musk, is also a close ally of Donald Trump. The situation is becoming increasingly absurd.
It’s now clear that Musk’s outspoken political activism is causing serious harm to Tesla. Sooner or later, he’ll have to choose between the White House and his company—though by then, it may be too late to undo the chaos he has created.
In the unsigned letter sent Friday to U.S. trade representative Jamieson Greer, Tesla acknowledged its support for fair trade but urged the government to avoid “inadvertently harming U.S. companies.”
The company warned that retaliatory measures from other nations could specifically target American businesses and industries, escalating each time the president imposed new tariffs.
It’s easy to see why Tesla’s senior executives are concerned. Canada, Mexico, the European Union, and even the UK may be seriously tempted to impose steep tariffs—50%, 100%, or even 200%—on every Tesla sold within their borders. After all, the U.S. has been repeatedly hitting them with tariffs of its own.
Retaliating against Tesla would be a straightforward and precise countermeasure—the economic equivalent of a targeted missile strike, damaging the company while sparing the broader industry. The real surprise is that it hasn’t happened already.
Tesla’s warning to the U.S. government was entirely justified. The problem? The company can’t distance itself from its controversial CEO simply by leaving his name off official letters.
The evidence is piling up: Musk’s political ambitions are actively harming Tesla. Sales have plummeted—down 70% in Germany, halved across Europe, and slipping in Australia and much of the U.S. Boycotts have been organized, with some former owners now referring to their vehicles as “Nazi-mobiles.” High-profile figures like singer Sheryl Crow have publicly ditched their Teslas, making a spectacle of their decisions.
In the UK, climate activists have launched a wave of protests against the company—ironically targeting an EV manufacturer, though logic has never been a strong point for groups like Just Stop Oil.
All of this is taking a toll. Tesla’s share price has nearly halved since its December peak, erasing $600 billion (£460 billion) from its market value and dragging the stock market down with it.
The harsh reality is this: Musk’s brand of techno-libertarian politics is alienating the environmentally conscious, socially liberal, white-collar professionals who have long been Tesla’s core customer base.
Is it time for the carmaker’s CEO to step down before the damage becomes irreversible?
