- Tesla has had a tumultuous week, including being kicked out of a Canadian auto show, top investors dumping Tesla stocks and a record number of people trading in their vehicles. The situation worsened with a recall of the Cybertruck due to a safety issue with an exterior panel.
- Additionally, at least three people face charges related to arson attacks on Tesla dealerships, with Attorney General Pam Bondi promising severe charges against those targeting Tesla.
- Despite the criticism, Commerce Secretary Howard Lutnick and President Donald Trump have shown support for Tesla, with Trump endorsing the electric vehicle manufacturer and planning to purchase Tesla vehicles.
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Tesla had a turbulent week after being kicked out of a Canadian auto show, many top investors dumping Tesla stocks and a record number of people trading in their vehicles. Now, a recall on the company’s Cybertruck made an already rough week worse.
Why is the auto show keeping Tesla out of the event?
Vancouver Auto Show Executive Director Eric Nicholl told Fox Business the auto show’s primary concern is for the safety of attendees, exhibitors and staff.
On Sunday, March 16, “Tesla Takedown” gatherings took place outside dealerships in Canada. Protestors in Vancouver and Ottawa demonstrated against Tesla CEO Elon Musk, who is the head of the Trump administration’s Department of Government Efficiency.
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What is the specific problem with the Cybertruck?
The Cybertruck is now under recall in the United States. The National Highway Traffic Safety Administration warned that an exterior panel, that runs along the left and right side of the windshield, can detach while driving. This creates a hazard and increases the risk of a crash.
The recall affects all 2024 and 2025 model years, totaling more than 46,000 vehicles.
Tesla will replace the panel free of charge. Letters will soon be going out to owners.
What else has happened with Tesla?
Several top executives in the company also sold off more than $100 million worth of Tesla stocks. The sell-off comes as the company’s stock dropped 50% since December 2024.
The majority of the sale came from Tesla chairwoman Robyn Denholm, who sold more than $75 million in shares in the past five weeks. However, these sales were part of an already established plan from July 2024.
Tesla board member James Murdoch sold off $13 million worth of stocks on March 10, according to the U.S. Securities and Exchange Commission. Elon Musk’s brother, Kimball Musk, sold 75,000 shares of the company. These shares were valued at about $27 million.
Additionally, at least three people are charged with crimes related to arson attacks on Tesla dealerships. Each of these people faces up to 20 years in prison, according to the Justice Department.
Attorney General Pam Bondi said she and her department will bring severe charges against those who target Tesla.
“The days of committing crimes without consequence have ended,” she said in a statement on Thursday, March 20. “Let this be a warning: if you join this wave of domestic terrorism against Tesla properties, the Department of Justice will put you behind bars.”
Are recent events causing people to return their Teslas?
According to data from Edmunds, a record number of people are returning their Teslas. Tesla models from 2017 or newer accounted for 1.4% of all the vehicles traded in, according to the data from March 15.
March’s trade-ins would be the highest monthly share Edmunds has on record for the electric car company.
How have Musk’s allies responded to the Tesla criticism?
During an interview with Fox News host Jesse Watters on Wednesday, Commerce Secretary Howard Lutnick suggested viewers buy Tesla stock.
“Buy Tesla. It’s unbelievable that this guy’s stock is this cheap. It’ll never be this cheap again,” Lutnick said on the program.
The White House previously endorsed the electric vehicle manufacturer. On March 11, President Donald Trump, Musk and the press met in front of the White House to show off Tesla vehicles. Trump said he would purchase some cars and that the White House would use them.
“I’m going to buy a brand new Tesla tomorrow morning as a show of confidence and support for Elon Musk, a truly great American,” Trump said during the event.
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Why do some people have an issue with Tesla?
Some have issues with Tesla due to Musk’s involvement with the Trump administration and his role in DOGE.
The Trump administration levied tariffs against Canadian aluminum and steel imports, with more tariffs to be announced in April. In addition, Trump said numerous times that he would like to make Canada the 51st state, angering many Canadians.
The Tesla lineup of vehicles includes the Model S, Model 3, Model X and Model Y, as well as the Cybertruck.
[Craig]
BACKLASH AGAINST ELON MUSK, THE HEAD OF THE TRUMP ADMINISTRATION’S DEPARTMENT OF GOVERNMENT EFFICIENCY, CONTINUED THIS WEEK. U.S. NEWS AND WORLD REPORT IS REPORTING THAT DRIVERS HAVE TRADED IN A RECORD NUMBER OF TESLAS
TESLA CARS FROM MODEL YEAR 2017 OR NEWER, ACCOUNTED FOR 1.4% OF ALL VEHICLES TRADED IN UNTIL MARCH 15TH. THAT NUMBER IS UP FROM .4% IN MARCH OF LAST YEAR.
ANALYSTS AT EDMONDS, THE NATIONAL CAR SHOPPING WEBSITE, PREDICTED THAT SHARE WILL GROW THROUGH THE SECOND HALF OF THE MONTH. IT ALSO REPORTED TESLA’S MADE UP 1.2% OF VEHICLES TRADED-IN, DURING DONALD TRUMP’S FIRST MONTH IN OFFICE.
THE MARCH TRADE-IN NUMBERS WOULD BE THE HIGHEST MONTHLY SHARE EDMONDS HAS ON RECORD OF TESLA TRADE-INS TOWARD NEW OR USED PURCHASES AT DEALERSHIPS, NOT INCLUDING TRADE-INS FOR NEW PURCHASES OF TESLAS.
MUSK HAS BEEN THE SUBJECT OF PROTESTS, DEMONSTRATIONS AND SUSPECTED ARSON AS THE DEPARTMENT OF GOVERNMENT EFFICIENCY HAS SLASHED SPENDING IN NUMEROUS GOVERNMENT DEPARTMENTS AND CUT THOUSANDS OF FEDERAL JOBS.
JESSICA CAMPBELL, THE HEAD OF EDMUNDS INSIGHTS SAID, “ BRAND LOYALTY IS BECOMING A BIGGER QUESTION MARK AS FACTORS SUCH AS ELON MUSK’S INCREASING PUBLIC INVOLVEMENT IN GOVERNMENT, TESLA DEPRECIATION CONCERNS AND ITS INCREASED SATURATION IN MAJOR METRO AREAS LEAVE SOME LONGTIME OWNERS FEELING DISCONNECTED FROM THE BRAND. “
IN ADDITION TO THIS, A RECALL HAS BEEN ISSUED FOR NEARLY ALL CYBERTRUCKS OVER STAINLESS STEEL PANELS FALLING OFF THE VEHICLE.
TESLA SAID IT EXPECTS THE VEHICLE BUSINESS TO RETURN TO GROWTH THIS YEAR.
IN ADDITION, NEWSWEEK IS REPORTING SEVERAL TOP EXECUTIVES AND BOARD MEMBERS AT TESLA HAVE SOLD SIGNIFICANT PORTIONS OF THEIR STOCK HOLDINGS, ACCORDING TO FILINGS WITH THE SECURITY AND EXCHANGE COMMISSION. THOSE SALES HAVE TOTALED MORE THAN $100 MILLION.
ALSO ON THE FINANCIAL FRONT, TESLA’S STOCK VALUE HAS DROPPED BY 50% SINCE DECEMBER, COSTING THE COMPANY $800 BILLION IN ITS MARKET CAP AND COSTING MUSK ABOUT $100 BILLION IN NET WORTH.
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