Tesla’s Retail Faithful Still All-In on Musk Mythology—Despite the Rollercoaster

Elon’s hype machine keeps working overtime: Half of retail traders still cling to TSLA like a meme-stock relic.

Why the blind faith?

Musk’s cult of personality outweighs fundamentals—again. Tesla’s retail base treats volatility as a feature, not a bug. Meanwhile, institutional investors quietly rotate into AI and crypto plays.

Final thought: When the ’story stock’ narrative fades, will the last retail bagholder please turn off the Cybertruck’s LED light show?

TLDR

• Tesla stock closed Friday at $339.34, down 0.50% as retail traders remain split on Elon Musk’s 5-year CEO commitment
• Stocktwits poll shows 50% of retail traders buying Tesla long-term, while 22% are selling due to concerns about Musk’s unpredictability
• Tesla’s European sales plummeted 49% in April despite overall EV market growing 27.8% in the region
• Company’s European market share dropped to just 0.7% from 1.3% a year earlier as Model Y upgrade fails to boost sales
• Tesla reported 20% drop in automotive revenue and 71% plunge in net income for Q1 2025

Tesla faces a tale of two markets as retail investors debate the company’s future while European sales continue their steep decline.

The electric vehicle Maker closed Friday at $339.34, down $1.70 for the session. This modest daily drop masks deeper concerns about the company’s trajectory.

A recent Stocktwits poll drawing 1,900 votes reveals the division among retail traders. Half are buying Tesla shares with long-term confidence, viewing CEO Elon Musk’s leadership as a stabilizing force.

Musk recently committed to steering Tesla for at least five more years during Bloomberg’s Qatar Economic Forum in Doha. “It’s not a money thing,” he said. “It’s a reasonable control thing over the future of the company.”

Another 14% of poll respondents are holding their positions, waiting for major catalysts like the anticipated Robotaxi launch. But the picture isn’t entirely rosy.

Twenty-two percent are actively selling Tesla stock, citing worries about Musk’s unpredictability and the company’s volatile fundamentals. Another 14% are avoiding the stock entirely, preferring opportunities elsewhere.

Musk’s comments address investor concerns about his divided attention. He’s also advising President Donald Trump’s Department of Government Efficiency (DOGE).

On Tesla’s latest earnings call, Musk said his DOGE involvement WOULD taper to “a day or two per week” moving forward. This scaling back prompted one prominent Wall Street bull to raise Tesla’s price target to $500.

Weak Fundamentals Paint Concerning Picture

Tesla’s financial performance tells a troubling story. The company reported a 20% drop in automotive revenue for Q1 2025. Net income plunged 71% during the same period.

These numbers reflect broader challenges facing the automaker. Tesla stock has declined 10.5% in 2025, underperforming the S&P 500’s 1.1% loss.

The company’s struggles extend beyond American borders. European sales data reveals a stark disconnect between Tesla’s performance and the broader EV market.

Tesla’s European sales crashed 49% in April compared to the previous year. This decline occurred while battery-electric car sales in the region ROSE 27.8%.

The contrast couldn’t be sharper. European consumers are embracing electric vehicles at record rates, but they’re not choosing Tesla.

European Market Share Continues Sliding

Tesla’s European market share dropped to just 0.7% from 1.3% a year earlier. This marks the fourth consecutive month of declining European sales for the company.

The Model Y upgrade, which Tesla hoped would revive European fortunes, shows little sign of working. European consumers appear unmoved by the refreshed offering.

Several factors contribute to Tesla’s European struggles. A backlash against Musk’s political views plays a role. Heightened competition from European and Chinese manufacturers adds pressure.

European EV sales reached 59.2% of passenger car registrations in April, up from 47.7% the previous year. Tesla isn’t capturing this growth.

Chinese state-owned SAIC Motor saw registrations rise 24.5% in April. Japan’s Mitsubishi posted 22.1% growth. These gains highlight Tesla’s missed opportunities.

Overall European car sales dipped just 0.3% in April. The strongest growth came from electric and plug-in hybrid vehicles.

Total EU car sales have fallen 1.2% year-to-date, not including Britain and EFTA countries. Despite this modest decline, EV adoption continues accelerating.

Battery-electric vehicle registrations rose 26.4% across the EU. Plug-in hybrid registrations increased 7.8%. Hybrid-electric vehicles saw 20.8% growth.

Tesla’s European sales fell to just over 7,500 units in April, according to ACEA data showing the company’s 0.7% market share.