Tesla is facing a challenging period as its core business shows signs of slowing down, amidst controversies surrounding CEO Elon Musk‘s political involvements. The electric vehicle giant’s stock has since lost almost half its value from the all-time high it reached last December. Their shares fell another 6% on Monday in premarket trading. Nor did the company manage to avoid a second consecutive year of decline in vehicle deliveries for 2024. Preliminary data indicates that sales are declining once more this year, particularly in Europe.
Elon Musk has recently blamed some of Tesla’s current woes on backlash as a result of his political extracurriculars. It’s his role with the new Department of Government Efficiency in Virginia and his experience in the Trump administration that have people riled up. Musk is convinced this controversy is hurting Tesla’s share price fortunes.
“What they’re trying to do is put massive pressure on me, and Tesla I guess, to… stop doing this,” – Elon Musk
Tesla’s share were in already in Monday down more than 34% year-to-date. Regardless, Musk has recently claimed that the current stock troubles are a long-term “buying opportunity.” The issues coming back to haunt the company are not just political fury. The deepening core crunch business is much more the cause of recent troubles at Tesla.