Elon Musk Admits He Spent 'Too Much Time' On Politics After Tesla Sales Decline In Multiple Regions

Benzinga
2025.05.28 08:32
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Elon Musk acknowledged spending "too much time" on politics, which he believes has negatively impacted Tesla's sales amid backlash from consumers. He stated that he has reduced his political involvement recently. Despite this, investor confidence remains, with Wedbush Securities setting a $500 price target for Tesla. However, concerns persist regarding Tesla's upcoming Robotaxi launch and Full-Self Driving technology. Following Musk's comments, Tesla's stock rose 1.26% in after-hours trading, valued at $367.47.

Tesla Inc. TSLA CEO Elon Musk admitted that he was spending "too much time" on politics amid the EV giant's poor sales figures and increasing backlash among consumers.

What Happened: "I think I probably did spend a bit too much time on politics," Musk said when asked about whether his involvement with politics has negatively affected his companies, in an interview with Ars Technica on Tuesday.

"It’s less than people would think, because the media is going to over-represent any political stuff, because political bones of contention get a lot of traction in the media," Musk added.

However, the billionaire reiterated his commitment to his companies, calling his involvement with the government, as well as the DOGE, a time allocation issue. "It was just relative time allocation that probably was a little too high on the government side, and I’ve reduced that significantly in recent weeks," he added.

Why It Matters: Musk's comments come in as the billionaire's EV giant Tesla has faced a lot of backlash due to his right-wing political endorsements as well as his close involvement with the Trump administration, with sales figures dwindling in multiple markets.

However, Musk had said that he would be rolling back on his DOGE commitments during Tesla's Q1 earnings call. Musk's commitment to Tesla has since inspired confidence among investors, with Wedbush Securities analyst Dan Ives setting an ambitious $500 price target for Tesla stock and a $2 trillion market cap.

While Musk's commitment to the brand has been well-received by the financial community, some experts still express doubts about Tesla, particularly the Austin Robotaxi launch in June.

Notably, Gerber Kawasaki's CEO Ross Gerber said, "Clearly, this is a product that’s not quite ready to go,” when talking about the Robotaxi, while Future Fund LLC's managing director Gary Black has raised doubts over the company's Full-Self Driving or FSD tech, which is a crucial element to the Robotaxi.

Price Action: TSLA gained 1.26% in after-hours trading, currently valued at $367.47, according to Benzinga Pro data.

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