U.S. President Donald Trump and Tesla CEO Elon Musk, along with his son X Æ A-Xii, speak to reporters near Tesla vehicles on South Lawn of the White House on March 11.The Associated Press
Geopolitics are taking a toll on Elon Musk’s business empire.
The tech billionaire’s starring role in Donald Trump’s action-packed return to the White House and Mr. Musk’s own public comments have backfired on his main businesses in different ways.
From tariffs on Teslas to cancelled Starlink contracts and anti-DOGE protests, here’s how the backlash is hitting Mr. Musk’s bottom line.
Tariffs and trouble at Tesla
Shares of Mr. Musk’s electric-vehicle maker, Tesla Inc. TSLA-Q, have fallen dramatically in recent weeks, after sharp declines in sales in Europe and elsewhere and slowing deliveries in China.
In October, the European Union placed a 7.8-per-cent tariff on Tesla as part of a broader strategy of levies on Chinese-made EVs – Tesla manufactures cars for sale in Europe in China. In Canada, some politicians are calling for a 100-per-cent tariff on Tesla vehicles.
On Tuesday, the Vancouver International Auto Show said it had removed Tesla from participating in the event over safety concerns.
British Columbia’s public utility B.C. Hydro also banned Tesla from its EV rebate program last week. The policy covers the company’s vehicles, chargers, batteries and inverters.
Anti-DOGE protests outside Tesla offices
People protest outside a Tesla dealership in Lisbon against Tesla and SpaceX CEO Elon Musk, on March 9.PATRICIA DE MELO MOREIRA/AFP/Getty Images
The deep cuts to U.S. government operations by Mr. Musk’s Department of Government Efficiency have triggered a wave of mass protests. Activist organizations from Vancouver to the United Kingdom have scores of demonstrations planned until at least April 5 as part of the Tesla Takedown movement, including at the company’s head office in Austin, Tex.
Vandals have targeted Tesla dealerships and charging stations with everything from graffiti to arson. According to social-media posts, some Tesla owners are changing their vehicles’ logos to avoid vandalism or getting rid of the cars altogether.
Mr. Trump took to social media saying Tesla vandals would “face hell.” He also turned the White House driveway into a Tesla dealership Tuesday and bought a red Model S in a bid to support Mr. Musk and his beleaguered brand.
President Donald Trump selected a shiny red Tesla on the White House driveway as he showed support for Elon Musk's electric automaker.
The Associated Press
Ontario ditching Starlink
Ontario Premier Doug Ford recently cancelled a $100-million contract with Mr. Musk’s Starlink satellite internet service. The 2024 deal aimed to bring internet access to remote communities in Northern Ontario. Quebec and Yukon are also contemplating whether to renew their service contracts with Starlink.
Ontario Premier Doug Ford says Ontario will ban American companies from $30 billion worth of procurement contracts, rip up a $100-million Starlink deal and remove U.S. booze in its first wave of retaliations against President Donald Trump's tariffs.
The Canadian Press
Starlink competitors getting boosts
Starlink has played a key role in Ukraine’s defence since coming online in 2022, after a Russian cyberattack on internet provider Viasat that left much of the Ukrainian military and the country with limited communications.
But amid tense relations between Washington and Kyiv, and concerns about Mr. Musk’s commitment to Ukraine, the EU began talks with French constellation satellite internet service Eutelsat about the possibility of adding service to Ukraine. That has sent shares of Eutelsat soaring.
Starlink operating in Pokrovsk, Ukraine at the base of the 25th Airborne Brigade, on Nov. 10, 2024.Olga Ivashchenko/The Globe and Mail
Mr. Musk recently insisted he would never turn off Starlink service in Ukraine.
Still, “Elon Musk’s increasingly erratic behaviour … is an opportunity for companies like Eutelsat and Telesat and Amazon,” said Michael Byers, Canada Research Chair in global politics and international law at the University of British Columbia and a co-director of the Outer Space Institute.
Read more: As Musk attacks Zelensky, Ukraine fears cut to vital Starlink satellite service
X woes
Mr. Musk’s social-media platform, X, experienced a series of outages Monday that he attributed to “a large, coordinated group and/or a country,” though it’s not clear what went wrong.
The value of X has sunk sharply since Mr. Musk acquired the company in 2022, according to one institutional investor’s calculations, while competing social-media platform Bluesky is seeing rapid growth.