Tesla shares tumble as Musk's political ties stir worry

Tesla is experiencing the longest series of stock value declines in its 15-year history. This decline has been ongoing and uninterrupted since Elon Musk went to Washington over seven weeks ago, as highlighted by CNBC.

At the opening of the session, Tesla's stock was listed at $252.53. By 12:30 PM Eastern Time, it had dropped to $225.94. In mid-December 2024, it was valued at $488.53 per share. Since the beginning of the year, Tesla's stock price has dropped by 42%. Tesla's market capitalization now stands at $723.2 billion.

As we previously reported on money.pl, Musk's high-profile public activities continue to draw attention. Investors are concerned about the impact of Musk's political involvement on Tesla. His role in the Trump administration and controversial statements on platform X have led to heightened concerns.

Musk's position as an advisor to the president and leader of the Department of Government Efficiency (DOGE) introduces uncertainty about future demand for Tesla products. The rise of anti-Musk sentiments in the USA and Europe has led to protests and acts of vandalism at Tesla plants.

Despite the challenges, Tesla's valuation is still 33% higher than last year's beginning of March. Some analysts remain optimistic about Tesla's upcoming products. Wedbush Securities has added Tesla to its "Best Ideas" list, predicting that Musk will refocus on the company in the second half of 2025. TD Cowen also holds an optimistic view, anticipating a new product cycle in 2025-26 to boost sales growth.

Reuters notes that, while Tesla's current earnings are almost entirely from electric car production, a significant portion of the company's stock valuation hinges on the hope for autonomous vehicles. The company has failed to fulfill this commitment, despite Musk repeatedly promising since 2016 that autonomous Teslas would be available by the following year.