After Musk "joined the cabinet," Tesla's stock price has fallen for seven consecutive weeks, with a market value evaporating by $800 billion

Data shows that after Elon Musk joined the Trump administration, Tesla's stock has fallen for seven consecutive weeks, closing at $262.67 on Friday. This marks the longest consecutive weekly decline for Tesla as a publicly traded company in 15 years.

Tesla's stock price dropped more than 10% this week, reaching its lowest level since November 5 of last year, the day of the U.S. presidential election, when it closed at $251.44. Since the peak of nearly $480 on December 17, Tesla's market value has evaporated by over $800 billion.

Wall Street Investment Banks Lower Tesla Price Targets

This week, several Wall Street investment banks, including Bank of America, Baird, and Goldman Sachs, lowered their price targets for Tesla.

Bank of America cut its target price from $490 to $380, citing a decline in Tesla's new vehicle sales and Musk's failure to announce the latest developments on a low-cost model.

Goldman Sachs also reduced its target price from $345 to $320, noting a decline in Tesla's electric vehicle sales in Europe, China, and parts of the U.S. market during the first two months of this year.

Goldman Sachs analysts also mentioned that Tesla's Full Self-Driving (FSD) faces a tough competitive environment in China, as the company's main competitors in the Chinese market typically do not require users to pay extra for smart driving features. The FSD is an advanced driver assistance feature sold by Tesla in the U.S.

Baird included Tesla in its "bearish fresh picks" this week, pointing out that "production stoppages" could affect Tesla's supply chain as the company adjusts the production of the new Model Y SUV.

Musk's Political Identity Poses Pressure on Tesla

Media reports indicate that Wall Street is not only focused on fundamental indicators such as sales and production, but investors are also assessing Musk's political stance and how his work in the White House will impact Tesla, as well as how long this impact will last.

Baird analysts wrote in a report:

"Musk's relationship with the Trump administration brings uncertainty to the demand side."

Before serving as an advisor to Trump and head of the Department of Government Efficiency (DOGE), Musk was already managing several private companies, including the AI startup xAI, the social media platform X, and the aerospace and defense contractor SpaceX.

Now, Musk has become a representative figure for the Trump administration's efforts to cut the size, budget, and functions of the federal government. Meanwhile, he has been making radical political statements on the X platform, attacking judicial rulings.

In the U.S. and Europe, anti-Musk and anti-Tesla sentiments are rising, with a series of protests erupting outside Tesla factories, and even incidents of suspected arson and vandalism occurring Media reports that even the most optimistic analysts and long-term supporters of Tesla must admit that Musk's political stance is affecting the appeal of the Tesla brand and impacting investor confidence.

For example, the clean energy website Cleantechnica has long been a supporter of Tesla, but the site published a column on Thursday discussing whether Tesla owners should sell their cars, even calling for Tesla's board to fire Musk.

Bulls Remain Optimistic

Wedbush Securities analyst Dan Ives wrote in a report on Friday:

“Tesla bulls are currently in an extremely unfavorable position, as negative sentiment towards Musk/DOGE and the Trump administration is spreading globally.”

“This is a testing moment for Tesla bulls (including ourselves).”

Currently, Wedbush still lists Tesla as a "Best Investment Option" and sets a 12-month target price of $550.

The firm stated:

“For Musk and Tesla, Trump taking office could be the best thing they have experienced.”

“This will create a deregulated environment that supports the development of autonomous driving, which is exactly Tesla's golden strategic vision.”

At present, Tesla bulls are still betting that the company will soon launch low-cost electric vehicles, Robotaxi autonomous taxis, fully autonomous ride-hailing services, and humanoid robots that may be used in factories in the future. Analysts expect Musk to refocus more energy on Tesla and other companies in the second half of 2025.

Analysts at TD Cowen also expressed optimism. The firm wrote in a report on Thursday:

“Tesla seems to be entering the early stages of the 2025-2026 product refresh cycle, and we believe this could reignite sales growth and improve market sentiment.”