Tesla is facing mounting boycott calls in Malaysia, as outrage spreads over CEO Elon Musk’s support for U.S. President Donald Trump, particularly in light of Trump’s controversial plan for Gaza, which could lead to the displacement of millions of Palestinians.
The backlash in Malaysia—one of Southeast Asia’s most vocal pro-Palestinian nations—underscores the growing risks of Musk’s political entanglements for Tesla’s business, particularly in international markets where perceptions of U.S. foreign policy play a major role in consumer sentiment.
Per SCMP, Malaysians took to social media to denounce Tesla after its launch of the Model Y “Juniper” earlier this week, branding the vehicle a “swasticar”—a term that originated in Europe following Musk’s hand gestures during Trump’s inauguration last month, which many perceived as resembling a Nazi salute.
Register for Tekedia Mini-MBA edition 19 (Feb 9 – May 2, 2026): big discounts for early bird.
Tekedia AI in Business Masterclass opens registrations.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register for Tekedia AI Lab: From Technical Design to Deployment (next edition begins Jan 24 2026).
“Not touching this swasticar,” wrote a user named Adnan Abdullah in response to a Facebook post by a Malaysian car review site regarding the Tesla Model Y launch.
The controversy surrounding Musk’s gesture quickly spread beyond the West. In London, activists pasted stickers reading “Don’t buy a swasticar” on hundreds of Teslas, according to a Newsweek report—and the slogan has now made its way to Southeast Asia.
The Tesla backlash in Malaysia intensified after Trump announced on February 4 that his administration was considering a U.S.-led reconstruction of Gaza, proposing to turn the war-ravaged strip into the “Riviera of the Middle East” while forcibly relocating Palestinians to Egypt and Jordan.
“Palestinians won’t have a right to return,” Trump declared. “Because they’re going to have much better housing.”
The proposal sparked global condemnation, particularly in Malaysia, which has long been one of the strongest supporters of the Palestinian cause. Prime Minister Anwar Ibrahim has positioned himself as Southeast Asia’s leading voice against Israel’s war on Gaza, calling out Western powers—including the United States—for enabling Israeli aggression.
Against this backdrop, Musk’s close alignment with Trump has deeply damaged Tesla’s image in Malaysia, where consumers have vowed to boycott the brand.
“Will never support a company that planned to displace Palestinians from Gaza. Vote with our money,” wrote a user named YH Chin on Facebook.
Some compared Tesla to Nazi-era German carmakers, drawing historical parallels between Musk’s ties to Trump and Volkswagen’s origins under Hitler.
“The new Nazi car. Racists and Betas will love it,” wrote Prabha Krishnan, referencing a term popular among incel communities to describe submissive males.
Tesla’s Malaysia Business at Risk Amid Growing Competition
The controversy comes at a precarious time for Tesla in Malaysia, where the company has struggled to gain a foothold against Chinese electric vehicle (EV) manufacturers. Tesla officially entered Malaysia in July 2023, launching its first showroom and customer experience center in Southeast Asia.
However, despite initial strong demand, Tesla has fallen behind Chinese EV brands, which offer cheaper and more accessible alternatives. BYD, China’s top EV maker, outsold Tesla in Malaysia in 2024, registering 8,750 units compared to Tesla’s 5,137 units, according to the Malaysian Road Transport Department.
The boycott movement could further erode Tesla’s market share at a time when Chinese brands like BYD and Xpeng, as well as local automakers Proton and Perodua, are ramping up EV production.
For Tesla owners in Malaysia, the controversy raises safety concerns, as some fear that their vehicles could become targets of vandalism.
“I think Tesla and Musk are intertwined, and the fact that Musk is spending a lot of time and energy doing non-Tesla things isn’t good for Tesla,” said a Malaysian Tesla owner, who requested anonymity due to concerns over possible reprisals.
Malaysia has set a goal of transitioning 70% of privately owned vehicles to EVs by 2050, but analysts believe that if Tesla’s reputation continues to suffer, Chinese brands could dominate the market instead.
“A Tesla boycott might slow Malaysia’s EV adoption in the short term,” the owner added. “But brands like BYD, Xpeng, and even Proton and Perodua will eventually fill the gap.”
Musk’s Political Ties Threaten Tesla’s Global Sales
Tesla’s Malaysia backlash is just the latest in a string of challenges linked to Musk’s increasingly politicized public persona.
Since becoming a major donor to Trump’s re-election campaign, Musk has cemented his role as a key adviser to the U.S. president, drawing backlash from liberals, anti-fascist activists, and international markets wary of Trump’s policies.
Beyond Southeast Asia, Tesla’s global sales have been plummeting. Recent full-year and January sales reports from key markets suggest a steep decline, even with the Cybertruck launch—which was expected to boost U.S. sales.
Musk’s erratic behavior and political affiliations have alienated a significant portion of Tesla’s traditional customer base, including many in Democratic-leaning states in the U.S. and international markets with strong anti-Trump sentiment.
The growing calls to boycott Tesla in Malaysia could hamper the company’s long-term ambitions in Southeast Asia, particularly as competitors capitalize on the controversy. With Tesla already struggling to compete against cheaper Chinese EVs, Musk’s close ties to Trump are now compounding the problem, alienating consumers in a country where political sentiment heavily influences purchasing decisions.