Elon Musk's Political Role Draws Investor Concerns as Tesla Shares Plummet

A majority of investors believe Musk's focus on government duties is negatively impacting Tesla's performance, with sales and stock value in sharp decline.

A Morgan Stanley survey found that 85% of respondents believe Elon Musk's political activities are harming Tesla's business fundamentals.
Tesla stock has dropped nearly 35% year-to-date, with analysts predicting further declines in vehicle deliveries and revenue for 2025.
Wedbush analyst Dan Ives, a longtime Tesla supporter, has criticized Musk for neglecting his CEO duties at Tesla in favor of his role leading the Department of Government Efficiency under President Trump.
President Trump publicly endorsed Tesla by purchasing a vehicle and bringing Tesla cars to the White House, temporarily boosting the company's stock by over 7%.
Analysts remain divided on Tesla's future, with some lowering price targets and predicting weak Q1 results, while others highlight long-term potential in autonomous and AI technologies.