Tesla Faces Crisis: Stock Plummets Amid Political Controversy

Tesla’s stock has lost nearly half its value since December, dropping another 5% on Monday.

Analysts cite weakening demand, brand perception issues, and Musk’s political entanglements as key factors.

Meanwhile, major stock indexes rebounded, but Tesla remained an outlier, continuing its downward trend.

Elon Musk’s involvement in the Trump administration as head of the Department of Government Efficiency (DOGE) is drawing

criticism.

Investors worry he’s neglecting Tesla, and some customers are boycotting the brand.

A major Tesla investor, Christopher Tsai, warned that Musk’s political activities are hurting the company’s bottom line.

Tesla is struggling against rising competition from Chinese EV makers like BYD.

In response, Tesla is planning a cheaper Model Y to regain market share in China.

However, analysts warn that Musk’s focus on politics and the Cybertruck may be distracting from Tesla’s core business.

Trump’s new tariffs on Canada, Mexico, and China are adding uncertainty for automakers, including Tesla.

The company warned that retaliatory measures could disproportionately impact its business.

Meanwhile, British Columbia has already ended subsidies for Tesla vehicles.

Wall Street analysts are losing patience with Musk.

Dan Ives, a longtime Tesla supporter, urged Musk to 'step up' as CEO, warning that continued neglect could

cause lasting brand damage.

With Tesla’s stock down over 50% from its peak, the pressure is mounting.