7-week stock slide correlates with Musk's role in Trump's cabinet
Tesla Shares Tumble Amidst Elon Musk's Political Engage with Washington
Last updated:
Edited By
Mackenzie Ferguson
AI Tools Researcher & Implementation Consultant
In a surprising financial twist, Tesla's stock has experienced a significant seven-week decline, coinciding with Elon Musk's advisory role in the Trump administration. Musk, who now leads the Department of Government Efficiency, has stirred both anticipation and skepticism by aligning with political forces traditionally outside the typical Tesla narrative. As criticism mounts from Wall Street insiders over reduced sales and the absence of a low-cost model update, public sentiment towards Musk's political maneuvers has also dampened Tesla's brand image.
Tesla's Seven-Week Stock Decline
Tesla's stock has been on a downward trajectory for seven consecutive weeks. This decline, notable in both its duration and consistency, has caught the attention of investors and analysts alike. The timing of this slump coincides with Elon Musk's increased involvement in political affairs, particularly his advisory role in the Trump administration, where he leads the Department of Government Efficiency (DOGE). This prominent political position has sparked negative sentiments among some consumers and investors, who perceive Musk's political engagements as a diversion from his responsibilities at Tesla, potentially harming the company's innovative image and market performance. In fact, the alignment with certain political ideologies has not only resulted in protests but has also led to some Tesla owners reconsidering their loyalty to the brand. The broader challenge Tesla faces is compounded by intensified competition in the electric vehicle (EV) space and a lack of fresh updates on a rumored new low-cost model which could tap into a broader market base. Analysts such as those from Bank of America and Goldman Sachs have responded to these developments by lowering their price targets for Tesla, signaling concerns over the company's immediate future in both sales and brand perception.
