Tesla Model 3 Customers Are Cancelling Orders Due To Musk's Link With The White House [Video]

Those on line and made reservations for Tesla's Model 3 might be bumped up due to reported cancellations for the fully electric sedans. The cause is mainly due to Tesla CEO Elon Musk's involvement in President Donald Trump's administration.

President Trump's executive order to ban travel and entry of refugees from seven primarily Muslim countries is having a significant backlash felt across the world. Not only is the ban affecting many people, it is also beginning to affect companies, according to Electrek.

Musk himself is against the ban and spoke about it in a Tweet. However, he serves as part of President Trump's Strategic and Policy Forum, additionally, he also became part of the administration's new manufacturing council as of last week. In parallel, Uber's CEO Travis Kalanick is also on President Trump's forum and council. Uber is currently being hit by an unsubscription campaign.

Tesla received more than 400,000 pre-orders for its Model 3; said cars will be mass-produced later this year. Customers who have paid $1,000 deposit for reservations are now reportedly canceling their reservations. From a Trump critic, Musk has been getting closer to the administration. It should be remembered that back in November 2016, before the elections, Musk said that Trump is not the right guy for the presidency, even adding that Trump does not seem to have the sort of character that reflects the United States, CNBC reported.

The sudden change of heart, it seems, is because Tesla and SpaceX rely heavily on the US government including the Department of Energy and NASA for loan guarantees and multi-billion contracts respectively. In what could probably be an attempt to quell escalating concerns, Musk crowd sourced possible amendments to the executive order that he said he would present to Trump and the advisory council. Admittedly, he says his ties with the current administration are getting him down.

It is unclear how many how many pre-orders for the Tesla Model 3 have been canceled, either way; it would seem it might not make enough of a dent since a full year of the Model 3's production is virtually sold out.