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Will California save Tesla?

People hold up signs in a courtyard. One says, Stop Elon; another reads, Musk Is A Rat
Protesters demonstrate against Elon Musk outside a Tesla location in Boston.
(Rodrique Ngowi / Associated Press)
  • Tesla is having a rough go of it, thanks to Elon Musk’s far-right proclivities. But a bit of good news courtesy of the state of California has wiped away some of the pain.
  • Tesla cars and dealerships have been targeted with vandalism and even attacks that have included shooting at dealerships, burning cars and throwing incendiary devices.

Hello and happy Thursday. The so-called Department of Government Efficiency, or DOGE, which I’ll say again is not a real government entity, is continuing its rampage, led by billionaire Elon Musk.

But, shockingly, not everyone is thrilled with Musk’s slash-and-burn approach to gutting the federal government. Or his targeting of Social Security and Medicaid, the health insurance program that covers a lot of children and elderly folks. Go figure.

This week, a judge ruled DOGE probably violated the Constitution when it basically shut down the U.S. Agency for International Development, cutting off lifesaving aid (including HIV treatment for children) around the globe.

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Musk’s extra-governmental agency was also hit with a lawsuit by the United States Institute of Peace this week, an independent nonprofit that tries to defuse conflicts around the globe, charging DOGE has subjected it to a “takeover by force.”

Those actions seem to have largely left Musk unbothered. What does seem to be getting his attention is the increasing wrath that protesters are aiming at his electric car company, Tesla.

Tesla, to be kind, is having a rough go of it, thanks to its chief executive’s far-right proclivities. But a bit of good news courtesy of the state of California has wiped away some of the pain.

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Whether that’s a good or bad thing, I’ll leave for you to decide.

A man in dark clothing flashes a T-shirt with the word DOGE
Elon Musk flashes his T-shirt as he walks on the South Lawn of the White House on March 9, 2025.
(Jose Luis Magana / Associated Press)

What’s going on

For months, Tesla has been struggling with a public relations morass due to Musk’s central role in the White House. In recent weeks, protesters have been holding demonstrations at Tesla showrooms, and Tesla owners have been subjected to scorn and even online doxxing. Once the darling of an elite set of eco-drivers, those willing to drop six figures on a car, Tesla has now become a vehicle non grata among that same set — and MAGA buyers strangely haven’t stepped in to fill the void.

In multiple cases, high-profile Tesla owners have rid themselves of the now-burdensome auto. Most recently, Sen. Mark Kelly (D-Ariz.), a Navy combat veteran, ditched his, after Musk called him a “traitor” for voicing support for Ukraine.

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“I bought a Tesla because it was fast like a rocket ship,” Kelly wrote on former-Twitter, also owned by Musk. “But now every time I drive it, I feel like a rolling billboard for a man dismantling our government and hurting people. So Tesla, you’re fired! New ride coming soon.”

Kelly subsequently posted he’d purchased a union-built Chevrolet Tahoe.

And it’s not just an American thing. Britain, France, Canada and other countries are also seeing backlash. The Vancouver International Auto Show removed Tesla products from its event this week, citing safety concerns.

Although these peaceful protests show no signs of slowing, there has also been a spate of violent acts against Tesla.

In multiple instances, including in Seattle, Las Vegas and Colorado, Tesla cars and dealerships have been targeted with vandalism and even attacks that have included firing bullets at dealerships, burning cars and throwing incendiary devices.

U.S. Atty. Gen Pam Bondi is on the case, vowing the harshest of penalties. “The swarm of violent attacks on Tesla property is nothing short of domestic terrorism,” Bondi said in a statement released on social media.

Which was measured, compared with Musk’s meltdown.

“This level of violence is insane and deeply wrong,” Musk wrote Tuesday on former-Twitter, above a video of a line of Teslas engulfed in flames on a Las Vegas lot. “Tesla just makes electric cars and has done nothing to deserve these evil attacks.”

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Musk also touched on his anger during a podcast conversation with Sen. Ted Cruz of Texas on Monday, claiming (as MAGA always does of protests) that shadowy lefty billionaires were paying people to go after Tesla. He continued that conspiracy theory on Fox News’ “Hannity,” adding that those protesting him are really just mad because he’s stopped them from stealing from the government. Uh-huh.

“It turns out when you take away people’s, you know, the money that they’re receiving fraudulently, they get very upset,” Musk told host Sean Hannity. “And they basically wanna kill me because I’m stopping their fraud and they wanna hurt Tesla, because we’re stopping the terrible waste and corruption in the government. And, well, I guess they’re bad people. Bad people do bad things.”

To be clear, peaceful protest is good. Violence is bad.

But also, Musk firing thousands of members of the American middle class, destroying lifesaving aid programs, then coming for our retirement and not being able to understand why some good people may think he’s the one doing bad things? On brand for a guy who “accidentally” did a Nazi salute, then posted and deleted this:

“Stalin, Mao, and Hitler didn’t murder millions of people. Their public sector employees did.”

What’s at stake

All that Musk ire has tanked Tesla’s stock — it’s down more than 40% year-to-date, with its price falling for nine consecutive weeks. The company lost more than $800 million in market value since December.

That’s led one of its top investors, Ross Gerber, this week to call for Musk to lay off the government wrecking or step down as CEO. ABC reported that four top officers of the company have sold more than $100 million in shares since February.

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The California bounce

But Wednesday, Tesla’s stock price unexpectedly bounced up — courtesy of California.

The California Public Utilities Commission granted Tesla a transportation charter-party carrier permit. This lets the company take another baby step forward in its quest to have self-driving taxis, like Waymo — because we need more places for people to have illicit sex.

As my colleagues Sandra McDonald and Caroline Petrow-Cohen report, “the permit by itself would not allow Tesla to run any autonomous vehicle rides, with or without someone behind the wheel. Rather, the permit is a prerequisite for the commission’s Autonomous Vehicle Passenger Service, which would give Tesla permission to deploy driverless taxis in the state.”

This new fleet of taxis will for now be driven by company employees — but the move was enough to give some investors and analysts desperately needed confidence that the company’s best days may lie ahead.

May the same be true for our country.

What else you should be reading:

The must-read: ‘Deeply concerned’: Crash victims’ families ask DOT not to water down Tesla oversight
The what happened: Tesla granted taxi permit in California amid protests, vandalism
The L.A. Times special: University of California orders hiring freeze, cuts in response to Trump threats

Stay Golden,
Anita Chabria

P.S. You’ve probably heard that Gavin Newsom has a new podcast that’s been widely panned. I took a listen, and I think we’re missing a larger point. Here’s my column.

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Ideas expressed in the piece

  • Musk’s DOGE initiative has faced legal setbacks, with judges blocking attempts to dismantle agencies like the U.S. Agency for International Development (USAID) and restrict access to sensitive taxpayer records, citing risks to global humanitarian efforts and privacy[1][4].
  • Critics argue Musk’s methods mirror his abrupt corporate tactics, such as mass layoffs at Twitter, which are ill-suited for governing and risk destabilizing essential services like healthcare, nuclear security, and aid programs[2][3].
  • Federal workers express widespread dissatisfaction with DOGE’s approach, with 67% disapproving of Musk’s efforts and 56% believing the Trump administration’s policies will harm government operations[4].

Different views on the topic

  • Supporters, including former President Trump and House Speaker Mike Johnson, praise Musk’s DOGE for exposing alleged government fraud and inefficiency, framing it as a necessary corrective to bureaucratic overreach[1][2].
  • Musk defends his actions as cost-cutting measures to eliminate waste, claiming opposition stems from disrupted fraudulent practices and “bad people” resisting accountability[1][5].
  • Some observers highlight Musk’s history of leveraging government subsidies for ventures like Tesla and SpaceX, suggesting his DOGE role reflects a pragmatic, business-driven approach to reforming public institutions[5].

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