Musk caught in ‘code red’ moment at Tesla
CNN — Like many American manufacturers, Tesla is caught in a bind thanks to President Donald Trump’s trade war.Unlike most of those other companies, though, Tesla has an added wrinkle – its CEO, Elon Musk, sometimes called the First Buddy for the close relationship he’s cultivated with the president.On Tuesday, Tesla reports earnings; that afternoon, Musk will take questions from investors. But there is a catch-22: If Musk continues his close ties to Trump, the company could alienate potential customers, both at home and overseas, who dislike Trump’s policies. If he distances himself from Trump, though, he risks the ire of the White House. It’s a lose-lose situation, and it’s a trap of Musk’s own making.The first quarter saw the company’s largest drop in sales after virtually nonstop double-digit sales growth. But the automaker’s finances are only part of what investors will want to know.Investors will want to know how much the Trump administration’s 25% tariffs on all imported vehicles are costing Tesla and what Musk thinks about them.A big question is when Musk intends to step back from Department of Government Efficiency, or DOGE, in Washington, and focus on fixing the problems at Tesla.People are waiting to see progress on self-driving cars, a Robotaxi fleet, a less expensive new Tesla model and plans to sell humanoid robots.Reassuring responses on any these topics could help reverse the slide that has wiped out about half of Tesla’s share value (TSLA) since mid-December — and perhaps restore some faith in the company.
