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Tesla Faces Investor Concerns Over Elon Musk's Political Role and Slumping Stock

A survey reveals widespread belief that Musk's political activities are harming Tesla, as the company grapples with falling stock prices and delivery challenges.

Donald Trump, accompanied by White House Senior Advisor, Tesla and SpaceX CEO Elon Musk, walks past a Tesla Model S on the South Lawn of the White House on March 11, 2025 in Washington, DC.
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Overview

  • A Morgan Stanley survey found 85% of respondents believe Elon Musk's political involvement is negatively impacting Tesla's business fundamentals.
  • Tesla shares have dropped 40% in 2025 so far, with a 15% plunge on Monday marking the steepest single-day drop since 2020.
  • President Donald Trump publicly endorsed Tesla, inspecting vehicles at the White House and pledging to purchase one as a show of support.
  • Ethical concerns have been raised about Trump's endorsement, with critics likening it to a misuse of public office for private gain.
  • Despite recent struggles, some analysts remain optimistic about Tesla's long-term prospects in autonomous vehicles and AI-powered robotics.