One of MAGA’s favorite companies is still reeling from its political ties to President Donald Trump, and that could cost its CEO a $1 trillion payday he recently negotiated with its board of directors, according to a new report.
Last year, Tesla shareholders approved a pay package for CEO Elon Musk that would allow him to earn more than $1 trillion in company stock if Tesla meets aggressive metrics over the next decade. Those metrics include growing Tesla’s market capitalization from $1.5 trillion to $8.5 trillion, putting it ahead of companies like Nvidia and Amazon, as well as earning and product-specific targets.
Musk’s journey toward achieving that unfathomable payday is off to a rough start, and the chairman’s ties to Trump seem to be a part of it, The Washington Post reported on Wednesday. Tesla’s reported profits plunged 46% during Q4 2025 compared to the previous year. The company was also dethroned as the number-one electric car.
“Tesla’s continued struggles in the automotive space demonstrate the breadth of the backlash Musk’s political involvement ignited last year and its potential to trigger lasting brand damage,” the report reads in part. “A Yale University study last year estimated Musk’s political activity cost Tesla sales of more than 1 million vehicles.”
Musk and Trump have had a complicated political relationship. Musk was one of Trump’s largest single donors during his 2024 presidential run, and agreed to head up Trump’s signature new government agency, the Department of Government Efficiency. However, Musk was later dismissed after his crew generated negative press for the administration.
After leaving the government, Musk claimed to be done with politics. However, his support for Republicans emerged late last year. Musk has since agreed to contribute to GOP races and recently made a $10 million donation to the Kentucky Senate race.
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