Can Elon Musk undo the damage his association with Donald Trump has done to the Tesla brand?

It’s too early to say. But one thing is clear: Musk is making a serious effort.

His latest move — launching a new political party, reportedly called the America Party — is a direct shot at Trump and the Republican establishment. The party is expected to run candidates in select races, putting Musk in open conflict with his former MAGA allies. Trump has already dismissed the idea as “ridiculous.”

It’s a savvy PR play. Musk’s high-profile clash with Trump ensures nonstop headlines — and potentially, a much-needed break from the toxic political identity Tesla has taken on in recent years.

It’s been just six weeks since Musk parted ways with the Trump administration. Since then, he’s gone on the offensive, publicly slamming Trump’s flagship policy, the so-called One Big Beautiful Bill, calling it “an outrageous pork-filled spending bill” that saddles Americans with “crushingly unsustainable debt.” He’s not wrong — but the backlash on Wall Street has been swift. Tesla shares dropped another 7% on Monday, amid concerns the administration might retaliate by pulling government contracts.

Investors are also worried Musk’s political crusade will distract him from Tesla’s core business — the same concern raised during his brief stint in the administration.

Wedbush analyst Dan Ives put it bluntly: “Musk diving deeper into politics and now trying to take on the Beltway establishment is exactly the opposite direction that Tesla investors/shareholders want him to take during this crucial period for the Tesla story.”

Still, Musk isn’t talking about running for office — he’s talking about bankrolling candidates in key swing districts. That could help him distance himself from Trump without becoming overly entangled in political theater.

And distancing himself is exactly what Tesla needs.

The fallout from Musk’s embrace of Trump has been brutal for the brand. Sales have plunged, especially in markets with progressive-leaning consumers — the demographic most likely to buy EVs. Polls show the Tesla brand has taken a hit, with sentiment tanking among moderates and liberals. MAGA Republicans may have cheered Musk’s political turn, but they didn’t buy Teslas — they bought pickup trucks.

Tesla shares are down about 28% year to date. That’s a steep underperformance compared to the S&P 500 (+6%), the Nasdaq (+8%), and even the “Magnificent Seven” tech stocks (+1.3% as a group — despite Tesla dragging the average down).

Wall Street analysts increasingly view Tesla as a long-term play on its robotaxi initiative, now being piloted in Austin, Texas. Musk envisions fleets of self-driving Teslas working around the clock to transport passengers and cargo. It’s a bold vision, but as always, key questions remain: Will it happen? When? At what cost? And will Tesla be the ultimate winner?

These are the classic unknowns that define high-growth tech stocks — and why they often swing wildly between hype and disappointment.

Given Musk’s effort to de-MAGA the Tesla brand, some may see the recent share price slump as a buying opportunity. Maybe it is. But Tesla still trades at a staggering $1 trillion valuation — about 122 times projected earnings for the next year.

Investor sentiment remains surprisingly bullish. According to FactSet, 44% of analysts rate the stock a “Buy,” with only 20% recommending “Sell” — not far off where sentiment has stood over the past year.

As always, the best time to buy is when the bulls have all left the room. That hasn’t happened — yet.

But Musk, at least, is working to repair the damage. And if his new political gambit restores the Tesla brand’s appeal with its core customer base, it could end up being exactly what the stock needs.

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