Elon Musk's political ties causing backlash, Tesla sales decline, stock weak

From Nasdaq: 2025-03-05 08:58:00

Elon Musk, once lauded for driving Tesla’s success, is now facing backlash for his right-wing political ties. A survey shows that 59% of potential buyers are discouraged from buying Tesla due to Musk. Protests are erupting outside Tesla stores in major U.S. cities, with European sentiment turning negative as well.

As Tesla’s sales slump and competition rises, Musk’s focus on politics is drawing attention away from the company. Vehicle deliveries are down in key regions, with China sales plummeting. Pressure is mounting on Musk to launch affordable models and accelerate autonomous driving to secure Tesla’s position in the market.

Despite challenges, Morgan Stanley reinstates Tesla as its “Top Pick,” highlighting the company’s focus on AI and robotics. Musk aims to generate trillions in revenue through Tesla’s Optimus robot and is pushing for unsupervised Full Self-Driving launch in Austin. Tesla’s AV and robotics initiatives could shape its future beyond EVs.

Tesla’s stock has dropped over 30% YTD, trading below key moving averages. Musk’s political involvement and Tesla’s sales decline are contributing to the stock’s weakness. Investors are advised to monitor Tesla’s progress on autonomous vehicles and consider the long-term potential of its technology and energy business.

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Read more at Nasdaq: Musk’s Political Moves Costing Tesla Investors: What to Do Now?