Elon Musk Faces Financial and Political Turmoil as Tesla’s Stock Plummets

Elon Musk, the CEO of Tesla Inc., has seen a staggering loss in the value of his shares in the electric vehicle manufacturer, amounting to over $80 billion. This downturn has occurred against the backdrop of an ongoing backlash triggered by his high-profile connections with former President Donald Trump and his controversial role in the Department of Government Efficiency (DOGE).

Since Trump’s inauguration, Tesla shares have fallen sharply, with a 46.3% decline reported up to the present day. This drop comes alongside a broader political and social movement, branded as “Tesla Takedown,” which has fueled protests at Tesla dealerships and other locations nationwide. Musk’s perceived distraction from Tesla’s core business, particularly as competition in the electric vehicle market intensifies and sales begin to wane, continues to weigh heavily on investor sentiment.

The Financial Impact on Musk’s Wealth

Musk’s stake in Tesla amounts to nearly 410.8 million shares, constituting about 12.8% of the company’s total shares. As the stock has plunged due to these political tensions, the value of his holdings has plummeted by approximately $81.2 billion. Despite this significant financial blow, Musk remains the world’s richest individual, with a net worth exceeding $300 billion, as calculated by the Bloomberg Billionaires Index.

The latest data shows Tesla shares (TSLA) experiencing a decline of 4.4% in midday trading on the preceding Monday and showcasing a cumulative drop of 19.1% over the last three trading sessions. Analysts are increasingly questioning Musk’s focus on Tesla amidst the controversy surrounding his actions and associations.

Market Analysts Weigh In

Wedbush analyst Dan Ives, a long-time proponent of Tesla, recently slashed his price target for the stock by 43%, down to $315. He attributed this adjustment to Musk’s entanglement in DOGE and the adverse effects of Trump’s tariffs. In a recent statement, Ives noted, “Tesla has unfortunately become a political symbol because of Musk, and this is a very bad thing for the future of this technology stalwart.”

Moreover, Ives described the ongoing protests and vandalism targeting Tesla vehicles as part of a “full brand crisis tornado,” which he believes has negatively affected the stock’s performance. Nevertheless, Ives maintains a bullish outlook amidst the gloom, suggesting that the stock still holds potential upside of about 38% from its current levels, seeing as 29 out of 57 analysts covering Tesla’s stock remain positive about its prospects.

Grassroots Protests and Counterprotests

Grassroots protests against Musk’s controversial stance are emerging in various forms. For instance, a recent protest outside a Tesla service center in Gowanus, Brooklyn, drew attention both for its messages of dissent and the polarized responses from passing motorists. Organizers like Kirsten Hassenfeld emphasized the need for visibility in their activities. Meanwhile, a Canadian activist leading protests noted, “I have never organized anything in my life until doing this,” capturing the grassroots essence of the Tesla Takedown movement.

On the other side of the political landscape, counterprotests have also appeared in support of Musk and his initiatives. On March 29, during a designated “day of action” against him, supporters from the Alachua County Republican Party organized a counterprotest outside a Tesla service center in Florida, aiming to provide a positive narrative amidst the protests. About 150 supporters gathered for this event, highlighting the divided public opinion regarding Musk’s role.

The Future of Tesla

As protests, both for and against Musk, continue to unfold, the future of Tesla remains uncertain. With a spate of analysts and activists weighing in on the issues at hand, it is clear that both the company and the electric vehicle industry are becoming increasingly political. Moving forward, the narrative surrounding Musk’s leadership and Tesla’s ability to navigate these turbulent times will likely play a significant role in shaping the company’s direction and market performance.

For investors and stakeholders, staying informed on these developments and their implications for Tesla’s stock is vital as the company continues to operate under heightened scrutiny and public sentiment.