Elon Musk, the CEO of Tesla Inc. TSLA, has leveled accusations against protestors at Tesla showrooms, stating they are funded by government waste and fraud.
What Happened: Musk made these statements during Tesla’s first quarter earnings call, suggesting that the protestors are beneficiaries of government programs that have faced cuts. He claimed that this is the real motive behind the protests, despite the lack of evidence supporting his assertions.
“They're …obviously not going to say admit that the reason that they're protesting is because they're receiving fraudulent money or or that they're the recipients of wasteful largesse,” said Musk. “The actual reason is that the the is that those receiving the waste and fraud wish to continue receiving it,” he added.
The protests, dubbed the “Tesla Takedown,” have called on Tesla shareholders to sell their shares and urged vehicle owners to stop using their cars. Organizers have emphasized that the movement is peaceful and does not support any form of violence or property damage.
However, there have been instances of vandalism and arson targeting Tesla properties. Last month, a 36-year-old man from Nevada was arrested and faced 15 felony charges for vandalizing a Tesla collision center in Las Vegas and setting fire to five vehicles. Additionally, three other individuals in Colorado, South Carolina, and Oregon were charged for carrying out similar attacks on Tesla vehicles and charging stations.
In an earlier interview with Fox News, Musk accused the Democrats of being responsible for the protests, describing their actions as “deranged.”
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Why It Matters: This development comes on the heels of Tesla’s Q1 earnings call, where the company reported a miss on both revenue and EPS estimates. The EV maker cited tariff pressures and changing political sentiment as factors clouding its guidance.
Following the earnings call, Musk announced his decision to reduce his involvement with the Department of Government Efficiency (DOGE), limiting his government work to "a day or two per week." This move was praised by Wedbush Securities analyst Dan Ives, who called it the ‘most important call Musk has ever had’. Ives viewed Musk’s renewed focus on leading Tesla as a positive sign.
Meanwhile, Investors, including ex-Tesla bull Ross Gerber, are growing doubtful of CEO Elon Musk’s bold forecasts after Tesla’s profits dropped 71% in Q1. Gerber, who has followed the company for 11 years, called it Tesla's worst performance yet.
Tesla stock climbed 4.60% to close at $237.97 on Tuesday, as per Benzinga Pro. During the after-hours trading, the stock rose 5.39%.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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