Tesla’s Stock Decline Amid Musk’s Political Ties and Market Challenges

Elon Musk’s planned reduction in government involvement by May has failed to stem Tesla’s stock slide, with shares dropping 1.25% to $281—erasing all gains since early 2025. The electric vehicle Maker faces mounting pressure from weakening sales and brand erosion linked to Musk’s controversial political affiliations.

Vandalism incidents and protests targeting Tesla showrooms have escalated following Musk’s advisory role to former President Trump. This reputational damage compounds existing concerns about softening demand for EVs across key markets.

Tesla’s R&D pipeline offers potential relief, with accelerated development of next-generation models and autonomous taxi technology. market analysts remain divided on whether these innovations can offset the company’s growing political baggage and execution risks.