Since Elon Musk took on a high-profile role in Washington, D.C., working alongside President Donald Trump to slash government spending, Tesla’s stock has nosedived by nearly 48%. The electric vehicle giant’s plummeting stock has sparked outrage among shareholders, raised concerns among pension fund managers, and drawn sharp criticism from both sides of the political aisle. Here’s a breakdown of the situation and what it means for Tesla’s future.
Tesla’s Stock Freefall: What’s Happening?
- Stock Decline: Tesla’s stock has dropped every week since Musk joined the Department of Government Efficiency (DOGE), wiping out over $700 billion in market value.
- Worst Trading Day: On Monday, Tesla shares closed down 15%, marking its worst trading day in five years.
- Musk’s Net Worth: Elon Musk’s personal fortune has shrunk by $148 billion since Inauguration Day, according to the Bloomberg Billionaire Index.
Why Are Pension Funds Sounding the Alarm?
Pension fund managers, who oversee retirement savings for millions of public workers, are growing increasingly concerned about Tesla’s stock performance.
- Illinois State Treasurer Michael Frerichs:
- “This is a real cost to real people. We’re talking about firefighters, police officers, and nurses whose retirement dollars are at stake.”
- Frerichs, a Democrat, believes Musk’s political involvement is alienating potential Tesla customers, drawing a parallel to Michael Jordan’s apolitical stance: “Even Republicans buy sneakers.”
- New York City Comptroller Brad Lander:
- Lander, who oversees $1.2 billion in Tesla stock through city pension funds, criticized Musk’s lack of focus on Tesla.
- “There’s no real leadership. It’s at the bottom of his list. We need a CEO focused on selling EVs, growing the company, and delivering returns for shareholders.”
Critics Speak Out: Shareholders and Protesters
Tesla’s stock plunge has angered shareholders and even sparked protests across the country.
- Dave Portnoy, Barstool Sports Founder:
- A Trump supporter and Tesla shareholder, Portnoy questioned Musk’s priorities: “If you’re asking federal workers, ‘What have you done for the last five days?’ Tesla shareholders deserve to ask Musk the same question.”
- Protests and Vandalism:
- In Florida, protesters rallied against Musk, with one stating, “Ever since Trump’s been in, it’s been more about Musk than Trump.”
- In Massachusetts, a suspect vandalized Teslas with images of Musk, claiming it was an act of “free speech.” Musk responded on social media: “Damaging the property of others, aka vandalism, is not free speech!”
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Expert Insights: What’s Driving Tesla’s Decline?
Financial analysts and industry experts weigh in on the factors behind Tesla’s stock slump:
- Political Distraction: Musk’s role in DOGE has diverted his attention from Tesla, raising concerns about his commitment to the company.
- Market Sentiment: Musk’s polarizing political involvement may be alienating a significant portion of Tesla’s customer base.
- Leadership Concerns: Shareholders and pension fund managers are calling for stronger leadership focused on Tesla’s core business.
