Tesla investors welcomed Elon Musk’s pledge to shift focus back to the electric vehicle giant, sending shares up nearly 8%. The CEO’s announcement came after Tesla reported a 71% drop in net income and declining auto sales. Musk said he would scale back his work with Donald Trump, limiting it to one or two days a week starting next month.

However, the boost in Tesla stock has not erased investor concerns over long-term brand damage. Musk’s high-profile support of right-wing politics has sparked protests, vandalism at Tesla showrooms, and negative public sentiment—especially in traditionally progressive markets like California.

Despite planning to launch an affordable EV model in early 2025, analysts warn Tesla’s brand image could hamper growth. Some believe increased EV adoption in conservative U.S. states might balance falling demand elsewhere, but experts say Musk’s political alignment may have already alienated a crucial segment of eco-conscious consumers.

Marketing experts argue that Tesla’s brand identity is now inseparable from Musk’s polarizing persona. “It may be too late to separate the man from the machine,” said Sue Benson, CEO of The Behaviours Agency.

Tesla also acknowledged in its latest update that vandalism and changing political sentiment have impacted sales, with more challenges expected amid global trade uncertainties. The company will revisit its 2025 delivery forecast in its July earnings report.