Tesla Inc. TSLA CEO Elon Musk drew attention to historic government downsizing efforts On Monday, amid growing protests over his role in the President Donald Trump administration’s Department of Government Efficiency and recent Tesla showroom demonstrations.
What Happened: Responding to a social media post on X, Musk acknowledged the Former President Bill Clinton administration’s significant reduction of the federal workforce, which cut more than 377,000 positions through the National Partnership for Reinventing Government initiative led by then-Vice President Al Gore.
The reference comes as protesters gather outside Tesla showrooms across major U.S. cities, including New York, Seattle, and various California locations. Some demonstrations have drawn up to 100 participants, expressing opposition to Musk’s involvement in current federal workforce reductions.
The controversy has begun affecting Tesla’s business interests. Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, hinted at plans to sell his Cybertruck after witnessing growing public hostility toward the brand. “The hate is real. Haven’t seen this before IRL,” Gerber posted on X, describing a vandalized Cybertruck he observed.
Why It Matters: The impact extends beyond U.S. borders, with Tesla’s German sales reportedly dropping 60% year-over-year in January following Musk’s public support for the Alternative für Deutschland party.
Rep. Ro Khanna (D-Calif.) highlighted the human cost of current federal job cuts, posting on X about “hard working Americans who voted for Trump and now are being fired from their jobs with the Parks Service, with Veterans affairs, with USAID, with NIH.”
Price Action: Tesla closed at $355.84 on Friday, down 0.028% for the day. In after-hours trading, the stock declined a further 0.52%. Over the past month, Tesla shares have fallen by 14.01%, according to data from Benzinga Pro.
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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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