On May 28, 2023, Elon Musk, the world's richest individual, announced his departure from his role as a special government employee in the United States, stating that his time was nearing completion.

Musk expressed gratitude to former President Donald Trump for the opportunity to reduce government waste through the Efficiency Enhancement Team (DOGE).

His tenure, initially set for 130 days, was due to end in late May, a fact he had previously communicated on April 23 when he indicated he would step back from public life.

Assessments of his political effectiveness during this period remain contentious, particularly in light of comments Musk made just days before his announcement, expressing disappointment with Trump's budget proposal, which he felt exacerbated the budget deficit.

Musk’s governmental work finishes amid significant concerns for Tesla, a company that has seen its sales and stock prices decrease markedly since Trump's second presidential campaign began.

While Tesla’s stock has partially rebounded, it remains approximately 20% lower than its December 2022 peak.

Additionally, Tesla underperformed in 2024 versus the previous year, with first-quarter numbers revealing a troubling trend with only 336,000 vehicles sold, marking a 13% drop from Q1 2024 and more than a 20% decline from Q1 2023.

The situation in Europe has proven particularly dire, with Tesla's sales experiencing a 30% downturn in the first quarter of 2024. Initial hopes for a revived interest due to the launch of a new version of the Model Y have faltered, as sales in Europe plummeted by 49% in April compared to the previous month.

Musk's relationship with Trump has complicated public perception, especially among liberal voters who once supported Tesla.

After initially collaborating with Barack Obama in the early 2010s, Musk’s support for Trump, particularly during the latter's 2022 presidential campaign, has alienated significant segments of his customer base.

Reports indicate many Democratic voters pledged to boycott Tesla following Trump’s November election victory, further exacerbated by incidents of vandalism against Tesla dealerships by some activists.

The repercussions of Musk's political alignment have raised questions regarding Tesla's competitively positioned market identity, especially as it faces intensified competition from both established European brands and emerging Chinese manufacturers such as BYD and SAIC.

In Germany, which has been critical to Tesla's expansion, sales fell by 60.4% from January to April 2024, significantly steeper than the European average.

Analysts observe that while the broader EU electric vehicle market is recovering year-over-year, Tesla's association with right-wing political figures alienates potential European customers.

Concerns extend beyond sales figures, with the introduction of the much-anticipated Cybertruck facing production delays and technical problems that necessitated multiple recalls over the past 18 months.

Analysts project that Tesla might sell between 1.95 million to 2.08 million vehicles in 2024, requiring a significant sales increase in the latter half of the year.

Despite the challenges, some investors have begun to stockpile Tesla shares, driving the price up to above $360 from a previous low of between $220-$230 in April, banking on Tesla's innovation, recovery from political fallout, and new factory outputs to mitigate declining sales.

The future trajectory of Tesla is influenced by broader market dynamics, including government policies regarding tariffs and incentives in major markets such as the United States, China, and Europe, alongside the developments stemming from Musk’s recent retreat from political engagement.