Tesla takedown: Elon Musk faces backlash over massive federal workforce cuts

Chaos unfolded outside a Tesla dealership in New York City on Saturday as anti-Musk protesters clashed with police, leading to the arrest of nine demonstrators. The protests, which erupted nationwide, were a response to Elon Musk’s involvement in drastic federal workforce reductions directed by President Donald Trump.

Hundreds gathered, chanting and waving signs with slogans like “Burn a Tesla: Save Democracy” and “No Dictators in the USA”. Similar scenes played out at Tesla showrooms in Jacksonville, Florida, and Tucson, Arizona, where protesters blocked traffic and demanded action against the billionaire CEO. Police sources confirmed that at least nine individuals were detained in New York for disorderly conduct.

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Organizers accused Musk of spearheading the efforts of the newly established Department of Government Efficiency (DOGE), which has already led to the termination of over 100,000 federal employees. “Detaching Musk from Tesla would be a meaningful blow against this administration,” actor and filmmaker Alex Winter wrote in Rolling Stone. Winter, a key figure behind the protests, called for a boycott of Tesla stocks.

Mounting concerns over federal cuts

Since Trump’s inauguration on January 20, more than 100,000 out of 2.3 million federal employees have been fired or accepted buyouts, according to government sources. The cuts have disrupted critical functions, with agencies scrambling to rehire key staff, including nuclear security experts and scientists combating a severe bird flu outbreak.

“We are taking action at Tesla, Musk’s flagship company,” organizers declared on the actionnetwork.org website, urging people to dump Tesla shares and join the protests. Neither Tesla nor the White House responded to requests for comments on the escalating unrest.

The wave of layoffs has also led to the cancellation of hundreds of aid contracts and federal leases. For many protesters, Musk has become the face of these cuts, transforming Tesla showrooms into flashpoints of national discontent.

Economic fallout and market response

The backlash against Musk has already begun to ripple through financial markets. Tesla shares dipped 2.5% in after-hours trading on Saturday, reflecting investor concerns about potential reputational damage and disruptions to the company’s operations. Financial analysts warn that prolonged protests could threaten Tesla’s quarterly targets, particularly in the U.S. market, which accounted for nearly 60% of its $24 billion in revenue last quarter.

As protests intensify, political analysts suggest that Musk’s close ties to the Trump administration could backfire, jeopardizing not just his public image but also Tesla’s market performance. With federal agencies in disarray and public anger mounting, the implications of Musk’s role in the workforce cuts are only beginning to unfold.