Musk's Political Moves Costing Tesla Investors: What to Do Now?

Core Viewpoint - Tesla's brand image and stock performance are suffering due to CEO Elon Musk's increasing political involvement, which is alienating potential buyers and current owners [2][3][12]. Group 1: Impact of Musk's Political Involvement - A survey indicates that 59% of potential buyers are discouraged from purchasing a Tesla because of Musk's political stance, with 61% of current EV owners considering switching to a Chinese brand [3]. - Protests against Musk's political ties have occurred outside Tesla stores in major U.S. cities, and anti-Musk sentiment is also growing in Europe [4]. - Some Tesla owners are expressing their discontent by selling their cars and using bumper stickers that criticize Musk's behavior [5]. Group 2: Financial Performance and Market Position - Tesla's stock has dropped over 30% year-to-date, underperforming compared to its peers, and has lost all gains made after Trump's election win [6][12]. - Vehicle deliveries have significantly declined, with a 45% year-over-year drop in Europe and a 50% drop in China sales [10]. - Tesla's U.S. EV market share has fallen below 50%, down from 63% in 2022, indicating a loss of dominance in its home market [11]. Group 3: Challenges and Future Outlook - Tesla is facing slowing sales, rising competition, and a tougher market environment, which is compounded by Musk's distraction with political affairs [9][12]. - The company reported its first-ever annual drop in global deliveries in 2024, increasing pressure on Musk to focus on launching affordable models and advancing autonomous driving technology [12]. - Despite challenges, Tesla is still recognized for its strong technology and potential in AI and robotics, with initiatives like the Optimus robot and Full Self-Driving (FSD) capabilities being key to its future growth [15][16][18].