At the same time, Tesla has been culminating in sales reports of a gruesome 33% decline, hitting levels not seen by the company in close to three years. Now, CEO Elon Musk—currently the world’s richest man—is under fire for his political meddling and mismanagement. This announcement comes during a serious slide in the company’s overall performance.
In pre-market trading Wednesday, Tesla stock panicked after the company released sales numbers that fell far short of expectations. In fact, the company’s stock has plummeted by more than a third of its value over the past year. This latest drop comes in the wake of several controversies surrounding Musk’s political donations and his role in President Donald Trump‘s administration.
Experts suggest that Musk’s increasing political engagement may be affecting Tesla’s sales. In fact, under the cover of night, he recently committed more than a quarter of a billion dollars in order to reelect Trump. Now we know why Musk has pumped millions into the Wisconsin Supreme Court race. He supported former Republican attorney general Brad Schimel, who lost on Tuesday. Ross Gerber, a financial expert, commented on the situation, stating, “The brand is broken and may not be fixable.”
So on Wednesday when Politico reported that Trump announced Musk was quitting his position in the administration, we weren’t very surprised. We anticipate this change happening over the next few weeks. This news came shortly after Tesla’s share price unexpectedly turned positive. The critique of Musk’s rightward drift has been blistering. Protests dubbed “Tesla Takedown” are popping up at auto dealerships nationwide and in Europe.
As competition intensifies from companies like the Chinese firm BYD, questions about Musk’s leadership style and its impact on Tesla’s operational performance have arisen. Now the brand is having a hard time keeping its iconic market share as consumer tastes have changed and competitors have flooded the category.
Musk’s controversial stewardship has almost universally raised alarm bells with industry experts. They argue that the more politicized Musk becomes with his initiatives, such as heading up Trump’s Department of Government Efficiency (DOGE), the more Tesla’s brand suffers.
“Frankly, I can’t believe I’m here doing this.” – Elon Musk
The situation remains fluid as analysts closely monitor sales trends and the broader implications of Musk’s political activities on Tesla’s future.