Without providing any evidence, Tesla CEO Elon Musk alleged the protests plaguing Tesla showrooms in the U.S. and Europe are due to the Department of Government Efficiency (DOGE) eliminating financial fraud and not, as protestors have stated, due to his unelected high-profile role in government. He also claimed the protestors are getting paid for demonstrating against the electric vehicle maker, a point he has speculated on in the past.

Tesla CEO Elon Musk attempted to point the finger at protestors who have demonstrated en masse in front of vehicle showrooms in the U.S. and Europe, claiming without evidence that they have been activated because they are the recipients of government waste and fraud. Musk told analysts during the company’s first quarter earnings call on Tuesday that the demonstrators would never admit the real reason they’re protesting is because they get paid through government programs that have been victim to DOGE’s cuts, but that was the real rationale underlying their actions.

“The actual reason is because those receiving the waste and fraud wish to continue receiving it; that is the real thing that’s going on here, obviously,” Musk told analysts during an earnings call on Tuesday. “The protests that you’ll see out there, they’re very organized. They’re paid for that.”

Musk previously accused wealthy Democratic political opponents of funding protestors.

The “Tesla Takedown” protests, as some have been called, have urged Tesla stockholders to sell their shares and Tesla owners to dump their cars. The organizers have described the movement as peaceful and have said they oppose violence, vandalism, and destruction of property.

“Elon Musk is destroying democracy around the world, and he’s using the fortune he built at Tesla to do it,” the protest description on organizing website Action Network states. “We are taking action at Tesla to stop Musk’s illegal coup.”

Some demonstrators have grown violent, lobbing molotov cocktails and burning Teslas, prompting President Donald Trump to announce that anti-Musk actions against the automotive manufacturer would be treated as “domestic terrorism.” Last month, police arrested a 36-year-old Nevada man and charged him with 15 felony counts for vandalising a Tesla collision center in Las Vegas and firebombing five cars. Attorney General Pamela Bondi also announced charges against three other people in Colorado, South Carolina, and Oregon who also used molotov cocktails to either light Teslas on fire or attempt to do so, as well as charging stations.

In an interview with Fox News in March, Musk blamed Democrats for the protests and called their actions “deranged.”

Protest organizers in Seattle did not immediately respond to a request for comment.

Tesla stock tumbles

Musk’s take on the Tesla protests comes as Tesla faces a serious reckoning on its stock price. Share prices are down 37% year-to-date and even longtime Tesla bulls have called “code red” on Musk’s time at Trump’s side and his work with DOGE.

“Musk needs to leave the government, take a major step back on DOGE, and get back to being CEO of Tesla full-time,” Wedbush Securities analyst Dan Ives wrote in a note last week. “Tesla is Musk and Musk is Tesla….and anyone that thinks the brand damage Musk has inflicted is not a real thing….spend some time speaking to car buyers in the US, Europe, and Asia…you will think differently after those discussions.”

Tesla’s profit has taken a significant slide and the first quarter was more of the same. Operating income tumbled 66% year-over-year to $399 million, compared to $1.71 billion in the first quarter last year. Net income dropped 71% year-over-year to $409 million compared to $1.39 billion, and operating margin decreased to 2.1% from 5.5%—a slide of 343 basis points.

Meanwhile, revenues were down 9% to $19 billion compared to $21.3 billion, and the main culprits were lower vehicle deliveries, lower average car selling prices, and negative foreign exchange impact.

There were a few positives, however. Energy revenues were up 67% to $2.73 billion and services revenue grew 15% to $2.64 billion. Tesla also had a cash position of about $37 billion, up 38% year over year.

Tesla has said the performance headwinds are due to production issues with the Model Y update, lower selling prices, and rising operating expenses because of AI and other projects. However, investors are clearly deeply concerned that Musk is squandering Tesla’s future because of his involvement with the Department of Government Efficiency (DOGE) and his high-profile presence in the Trump administration.

Tesla stock tumbles

Read more about Tesla’s Q1 earnings:

Elon Musk claims Tesla demonstrators are somehow being paid via the government’s ‘waste and fraud’ — they just won’t admit it