Big Tech and Trump: What happens when business and politics mix?

Major US tech companies have been making efforts to strengthen ties with President Donald Trump’s administration. However, these political manoeuvres have sparked backlash, raising ethical concerns and even leading to business setbacks. From direct political endorsements to policy shifts influenced by Trump’s agenda, industry leaders are facing increasing scrutiny, and in some cases, declining sales. The "Magnificent Seven" tech stocks saw their sharpest sell-off in three years on Monday amid fears of shrinking profit margins due to rising import costs and shifting consumer sentiment in key international markets. 

Tesla CEO Elon Musk is one of the most prominent supporters of US President Trump, donating millions to his presidential campaign and heading up DOGE, the administration’s job-cutting initiative. However, Musk’s political entanglements have triggered widespread backlash, impacting several of his businesses. Tesla sales have been declining in numerous markets, which analysts link to Musk’s controversial rhetoric. Meanwhile, Musk’s SpaceX is losing a $100 million (€91.6m) deal with Ontario for its Starlink services due to Trump’s tariffs on Canadian goods. "Ontario won't do business with people hell-bent on destroying our economy," Premier Doug Ford said.

Musk’s endorsement of Germany’s far-right Alternative for Germany (AfD) party may also have negatively affected Tesla’s European sales. According to the German Federal Motor Transport Authority, Tesla’s car registrations plunged 76% in February, even as overall electric vehicle registrations in Germany increased by 31%. Sales in other European markets also suffered last month, with Tesla deliveries dropping 53% in Portugal and 45% in France, as reported by Reuters.

In China, Tesla faces regulatory headwinds as trade tensions with the US escalate. The company has yet to receive approval for its autonomous driving technology, while its biggest Chinese competitor, BYD, is likely to gain favour with Beijing, particularly with its adoption of DeepSeek’s AI model as China prioritises domestic demand. 

Among the Magnificent Seven stocks, the underperformance of Tesla’s share price shows the potential risks of mixing business and politics. The electric carmaker’s share price has been on a rollercoaster ride since November last year - tumbling 53% from its peak in mid-December after nearly doubling since Trump’s victory in the US election.  

Fact-checking at Meta

Musk isn’t the only entrepreneur seeking to improve relations with President Donald Trump. Meta ended its third-party fact-checking program and reintroduced political content in January, including previously restricted topics such as immigration and gender. Meta also donated $1 million (€916,000) to Trump’s inauguration, adding to contributions from firms like Amazon and OpenAI’s CEO Sam Altman.  

Meta’s social apps, including Facebook, Instagram, and Threads, have long faced controversy over the spread of misinformation on politically sensitive topics. In 2016, Facebook was widely criticised for facilitating the spread of misinformation during Trump’s first presidential campaign, contributing to the creation of fact-checking policies in the following years. The integration of artificial intelligence in content moderation is now expected to introduce more ethical and legal layers to this debate.

Mark Zuckerberg's efforts to woo the new US administration also marks a change of tack. Meta Platforms had previously suspended Trump’s Facebook and Instagram accounts for two years in 2021 following the Capitol riot on 6 January. Trump had referred to Facebook as an “enemy of the people”. 

Alphabet and Washington Post face employee scrutiny

Google, a subsidiary of Alphabet, also sparked outrage when it renamed the "Gulf of Mexico" the "Gulf of America" on Google Maps. This came in response to an executive order from Trump - calling for the body of water to be renamed. Additionally, Alphabet’s decision to abandon its policy prohibiting the use of AI for military applications has raised serious ethical concerns, triggering widespread resignations and employee-led petitions against the change. 

Meanwhile, Washington Post owner Jeff Bezos, who founded Amazon, has faced criticism for shifts in the paper’s editorial stance. The outlet’s opinion section now focuses on views supporting “personal liberties and free markets,” while pieces opposing this stance aren’t published. Bezos also blocked the paper’s planned endorsement of Democratic candidate Kamala Harris for the 2024 presidential election. These actions led to internal resignations and a drop in subscriptions.