Tesla, Inc. (TSLA.US) North American stores under attack, Musk's business empire caught in political whirlwind.

Notice that last weekend, dozens of Tesla, Inc. (TSLA.US) stores in North America were crowded with protesters. At the service center on the outskirts of Minneapolis, protesters held up signs saying Unplug the plug of the crazy king Musk and This car runs on fascism; outside the showroom in Manhattan, hundreds of people chanted Do not fund coups with Tesla, Inc. money. The protest movement called #TeslaTakedown swept through 37 cities across the United States, and even spread to Berlin, The Hague, and Victoriagraffiti, attempted arson, projecting Nazi symbols, a symbol war targeting Musk personally, is evolving into the most severe public trust crisis for Tesla, Inc. in its 20-year history. At the core of this storm is Musk's increasingly radical politicized identity. After the 2024 U.S. election, this global billionaire gained a new title: head of the Government Efficiency Department (DOGE) in the Trump administration. His leadership in cutting civil servants, reducing federal agency budgets, and abolishing the Department of Education is seen by protesters as a hijacking of democratic institutions by business leaders. More dangerously, Musk's political adventures in Europeopenly supporting the far-right German political party Alternative for Germany (AfD), and calling for overthrowing the British Labour governmenthave completely ignited the anger of cross-Atlantic China Welding Consumables, Inc. When a CEO becomes synonymous with political struggle, the company loses its safe zone. Recent surveys show that many voters do not approve of Musk's actions. A poll at Quinipiack University in late January found that 53% of voters opposed Musk playing a significant role in the Trump administration, compared to 39% who supported it. Quinipiack University poll analyst Tim Malloy said, Elon Musk is a powerful and crucial figure in the Trump inner circle, and voter opinions of him are unstable, with women clearly more critical of him than men. A recent poll by the American Electric Car Employment Alliance shows that 35% of electric car drivers have a positive view of Musk, while 42% have a negative view. The divide in his standing among female respondents is even greater (34% in favor, 43% against). Senior Republican strategist and CEO of the American Electric Car Employment Alliance, Mike Murphy, said that Musk's transformation from electric car Jesus to the deity of making America great again is damaging Tesla, Inc.'s brand image. Musk's image is more about making America great again than electric cars. He is the nightmare of Tesla, Inc.'s chief marketing officer, as he is now blocking the path for Tesla, Inc. The poll surveyed potential electric car buyers' opinions of brands. Among electric car competitors Ford, Toyota, and Volkswagen, Tesla, Inc. had the lowest favorability rating (63%) and the highest negative rating (37%). Amidst the declining popularity of Tesla, Inc., the Trump administration may cut federal electric car tax credits, meaning Tesla, Inc. will have to compete with foreign car manufacturers in a more level playing field. The cancellation of the electric car tax credit will also lead to a decline in sales across the entire electric car industry, with Tesla, Inc. having a high leverage position with its all-electric car product lineup. Even Tesla, Inc. employees are concerned that Musk is damaging the company's brand, as evidenced by recent leaked recordings of Tesla, Inc. employee meetings. In another part of the meeting, senior management apparently indicated that Tesla, Inc. would be better off if Musk resigned. Although Tesla, Inc.'s official delivery report for the first quarter will be released in early April, Musk and Tesla, Inc.'s continually sinking brand image have already suffered heavy blows in some regions. Due to Musk's overtures to the far-right Alternative for Germany (AfD) in Germany, only 1,277 new Tesla, Inc. cars were registered in Germany in January, a nearly 60% drop compared to the same period in 2024. In January, Tesla, Inc. sales in France, Norway, and the UK fell by 63%, 38%, and 12% respectively. Analyst Colin Rusch of Oppenheimer said that Musk's foray into politics is at its worst timing. We believe Musk's political activities and increasing regionalization could impact Tesla, Inc.'s sales. We see the biggest risk in Canada and the EU, where Tesla, Inc. sales have been on a continuous decline since early 2023, Rusch wrote last week, emphasizing concerns over weak sales volumes in China and the EU in January.