How Will Musk’s Mask-Off Fascism Affect Tesla’s Future?

On January 20, Tesla CEO Elon Musk attended President Donald Trump’s inauguration and delivered a speech. At the end of his remarks, he alienated the world with his one-armed gesture. Following the speech, people understandably started asking if Elon Musk is a fascist. Let’s dive into the facts and what it means for Tesla and the auto industry. 

What Is Fascism? 

People use the term fascism a bit too loosely nowadays, so what does this belief entail? The Council on Foreign Relations defines it as a movement emphasizing national supremacy over individual rights. When fascists take over a government, they dismantle the existing political infrastructure by meddling in fair elections, silencing critics and emphasizing nationalism. 

Fascists have risen and fallen in recent history, with Benito Mussolini and Adolf Hitler as two significant figures. These leaders concentrated power for the executive branch, suppressed opposition and started World War II in Europe. Fascism faded after the conflict, but its roots remain in Europe, North America and other continents. 

The Fascist Controversy Surrounding Elon Musk

So, how do the Elon Musk fascist claims tie in? The conversation exploded on January 20th following his inauguration gesture. Tesla’s CEO said, “My heart goes out to you,” before launching his right hand from his chest and turning his palm down. While it resembled a Roman salute, it’s hard to deny what his hand looked like — the Sieg Heil gesture. 

Tesla’s figurehead denied paying homage to Hitler and other controversial figures. However, his recent track history suggests otherwise. Germany, the home of Mercedes-Benz and BMW, held its federal elections in February 2025 and had the world watching. Musk supported Alice Weidel, the nominee for the country’s far-right Alternative for Germany (AfD) party.

How Did the World React to the Elon Musk Fascist Salute?

As you might expect, the incident drew ire from onlookers worldwide who associated the gesture with 1930s Germany. Following the inauguration, the Jewish Council for Public Affairs said Musk embraced far-right parties and policies with his actions. However, the CEO said she was unsurprised by the moment and his normalizing of extremist behavior. 

Reactions were strong overseas, especially in Germany and Western Europe. Mitch Friedman, a German politician born into a Jewish family, said Musk’s gesture signals a breaking point for the free world. In the U.S., Democratic politicians quickly decried the Tesla leader and said his inauguration speech resembled fascist salutes. 

Involvement in the 2025 German Elections

A week after the controversial salute, Musk appeared at an AfD campaign event. In his remarks, the South African businessman told party supporters to move past guilt based on Germany’s past. Specifically, he said not to feel guilty about the sins of their parents and grandparents. While the AfD didn’t seize power in the Bundestag, Musk congratulated Weidel on the party’s gains.  

Weidel and the AfD have increased their influence in Germany and revived its infamous past. For instance, her supporters have chanted, “Alice für Deutschland,” influenced by a similar phrase used by German stormtroopers during World War II. Musk demonstrated his support on X, formerly known as Twitter, by spreading misinformation and repeating xenophobic sentiments. 

Elon’s Involvement in Italian Elections

Musk’s most recent public support for far-right figures involves Weidel and Trump. However, the Tesla titan has inserted himself into other elections. In 2022, Musk threw his support behind Giorgia Meloni in her bid to win the role of Italian prime minister. Meloni represents the Brothers of Italy Party, the most right-wing faction of Italy since the end of World War II. 

For decades, Italy has been famous for producing Ferraris and expensive wine. However, Musk wants the country to house SpaceX, Starlink and his other operations. To get to that point, he hitched his wagon to Meloni and the Brothers of Italy. Meanwhile, Meloni has distanced herself from supporters who repeat Mussolini’s 20th-century sentiments.

How Has Musk’s Antics Affected Tesla? 

Musk has made rounds in the U.S., Europe and South America to influence elections. The billionaire has become synonymous with the companies he owns — especially Tesla — so the automotive company has taken some hits. Tesla was the EV of choice for road trips and daily commutes, but that’s no longer the case worldwide. 

Tesla sales plummeted by 45% in Europe from January 2024 to January 2025. Last year, the EV leader sold over 18,100 new vehicles in the first month, whereas the start of 2025 saw just under 10,000 Teslas roll off the lot. Sales dropped significantly in France and Germany, as Tesla showrooms sold at least 60% fewer cars in both countries. 

Musk Protests Begin at Tesla Dealerships

People who call Elon Musk a fascist have started protesting against his involvement in the American government. However, the billionaire doesn’t necessarily have an office for people to gather. What’s the solution? Protestors have chosen Tesla dealerships as their preferred spot. From California to New York, people are voicing their opinions. 

Protests have increased in early 2025, especially after Musk’s involvement in the American federal government. In Chicago, residents say they fear the association of Tesla with Musk’s growing worldwide presence. Even former Tesla owners say they’ve sold their cars and switched to other brands. Plus, recent videos have shown the vandalism of Tesla vehicles due to Musk’s antics.  

What Does the Future Hold for Tesla?

Only 12 companies have a market cap of at least $1 trillion, and Tesla is among them. However, the fascist support of Elon Musk doesn’t help the company’s long-term health. The large EV automaker saw its revenue drop in 2024, leading to massive job cuts and other significant changes. If more changes don’t come, the manufacturer could be in trouble. 

The long-term threat to Tesla arrives in two different ways. First, car buyers have responded to Musk’s antics by not buying his cars. Then, you must consider how the rest of the automotive industry has caught up. Tesla is no longer the only option for EVs — now, you can buy electrified cars from Polestar, Porsche and other global brands. 

The Fascist Salute Controversy Surrounding Elon Musk 

For better or worse, Musk has transformed into a household name. The eccentric South African billionaire controls one of the world’s most influential EV manufacturers, but the company’s future is in question. If things don’t turn around soon, dropping stock prices could lead to further financial turmoil. In a few years, experts might look at the controversial fascist salute as a turning point for Elon Musk.