Tesla has lost almost all of its post-election gains as shares decline for the seventh consecutive week, marking the longest downturn in its 15-year history as a public entity. Last week, the automaker’s stocks dropped over 10%, closing on Friday at $270.48. Since peaking in mid-December, the company has lost over $800 billion in market cap, raising concerns among investors and analysts.
Several major financial firms, including Bank of America, Goldman Sachs, and Baird, have reduced their price targets for Tesla. While each firm cited multiple factors for their re-evaluation, the most pressing concerns are the automaker’s declining EV deliveries across key markets and the growing public backlash against Tesla CEO Elon Musk’s political involvement.
As the head of the Department of Government Efficiency (DOGE), an initiative aimed at shrinking the federal government, Musk’s role has negatively impacted the brand’s public perception. A “Tesla Takedown” movement in which demonstrators across the U.S. and Europe have publicly protested at Tesla dealerships reflects the growing public anti-Musk and anti-Tesla sentiment. While the majority of the protests have remained peaceful, some have escalated to acts of vandalism and arrests. Amid the turbulence, some Tesla supporters have even called for Musk’s removal as CEO.
Despite the overwhelming negative sentiment surrounding Tesla, some analysts see a potential silver lining. Optimists argue that Musk’s close ties with President Donald Trump and the White House could give Tesla an undeniable strategic advantage. One of the company’s most ambitious goals is to launch a paid robotaxi service and advance its autonomous driving technology. However, the rollout of autonomous vehicles (AVs) is currently impeded by a patchwork of state-level laws that vary drastically across the country.
Musk’s connections with the administration could help shape a unified federal framework for autonomous vehicle regulations, streamlining the process and accelerating Tesla’s ability to bring driverless vehicles to the market.
