Tesla Shares Plunge as Musk's Political Ties Stir Controversy
Tesla shares have dropped nearly 30% over the past three months due to CEO Elon Musk's political ties with President Trump. The stock, which started the year around $400, has faced significant selling pressure. Musk's role in the Department of Government Efficiency has led to job cuts and increased vandalism at Tesla properties. Vehicle production and deliveries have also declined. However, shares rose slightly after Trump indicated Musk would step down from his role to focus on Tesla.
Tesla, Inc. TSLA shares have fallen close to 30% over the past three months amid CEO Elon Musk‘s political involvement with President Donald Trump.
What To Know: Tesla’s stock started off the year valued at close to $400, but the stock has faced heavy selling pressure. At the start of the year, Musk took on his role as head of the Department of Government Efficiency (DOGE).
DOGE has cut thousands of jobs since its start, aligning with broader efforts to reduce the size of the federal government. The agency has cut more than 121 contracts, valued at over $350 million since it’s inception.
Besides impacting the stock price, Musk’s role in the department may have also resulted in a rise of incidents of vandalism at Tesla properties across the nation. There have been multiple reports of throwing Molotov cocktails, damaging vehicles and occurrences of arson, per Reuters.
The company's sales have declined since the quarter began, with vehicle production reported at 362,615, down from 433,371 a year ago. Deliveries fell to 336,681 from 386,810 in the same period last year.
The stock is now rising slightly on Wednesday after Trump told affiliates that Musk will soon step down from his role as the head of DOGE. While Trump remains pleased with the department and Musk’s performance, both men have decided that its time for Musk to focus on his business.
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TSLA Price Action: At the time of publication, Tesla stock is trading 4.60% higher at $280.62, according to data from Benzinga Pro.
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