Tesla, once seen as an unstoppable force in the electric vehicle (EV) industry, is now facing an uncertain future. Investors, analysts, and even longtime supporters are questioning whether the stock can regain its former glory. With Elon Musk’s controversial actions stirring political and social backlash, Tesla’s share price has been on a steep decline.
Tesla’s Stock in Turmoil
The uncertainty surrounding Tesla’s stock is unprecedented. Morgan Stanley analysts suggest that the price could either skyrocket to $800 or plummet to $200, leaving investors in a state of confusion. The company’s struggles became evident last month when Simon Hale, a portfolio manager at Wellington Altus Private Wealth, found himself needing to trim his Tesla holdings due to the stock’s prior gains. However, the recent 15% plunge in a single session solved that problem for him—without him making a move.
Adding to the turmoil, Musk’s political affiliations and bold statements have alienated a significant portion of Tesla’s consumer base. His vocal support for Germany’s far-right AfD party and radical cost-cutting stances in the U.S. have led to protests, vandalism, and even instances of arson against Tesla vehicles and facilities.
Investor Confidence Hits a New Low
Tesla has seen dramatic stock declines in the past. In late 2022, the price dropped to $100 per share amid concerns that Musk would sell off Tesla stock to cover losses at Twitter (now X). Another steep drop followed in early 2023, as doubts over Tesla’s growth potential surfaced.
But each time, Musk reassured investors—whether by halting Tesla stock sales or accelerating plans for a new, affordable EV model. This time, however, no such lifeline is in sight. Even dedicated Tesla fans who once eagerly bought more shares at every dip are now hesitating. Board members, including chairwoman Robyn Denholm, have collectively sold $100 million worth of shares. Meanwhile, some Jewish investors, deeply upset by Musk’s recent actions, are demanding the removal of Tesla from their portfolios.
Tesla Owners Feel the Backlash
The impact isn’t just financial—it’s cultural. Tesla owners are experiencing a shift in public perception. The brand, once synonymous with innovation and sustainability, is now facing social stigma. Herbert Ong, a Tesla investor, shared in an online forum that many of his friends in the Pacific Northwest are avoiding driving their Cybertrucks in cities like Seattle due to fear of negative reactions.
This marks a sharp contrast from the pandemic era, when Tesla was viewed as a revolutionary brand, capable of navigating global supply chain issues with ease. Now, Tesla’s biggest challenge isn’t competition from other automakers—it’s the growing number of consumers who no longer want to be associated with the brand.
Long-Term Optimism Amid Short-Term Chaos?
Despite the current crisis, some analysts believe Tesla could still be a strong long-term investment. Morgan Stanley’s Adam Jonas points out that if investors look ahead to 2030, the stock appears cheap, trading at just 19 times forecasted earnings for that year.
However, in the short term, uncertainty reigns. Tesla currently lacks a strong catalyst to drive investor confidence back up. Emmanuel Rosner of Wolfe Research warns that Tesla is caught in a “catalyst vacuum,” meaning there’s no clear event or development that could spark a major recovery soon.
Even Loyalists Are Selling
Even Musk’s staunchest supporters are starting to sell. Billionaire investor Ron Baron, who has been one of Tesla’s most vocal advocates, recently offloaded part of his firm’s Tesla holdings at the request of clients—though he insists he hasn’t touched his personal shares.
Despite his faith in Tesla’s future, Baron subtly urged Musk to consider his actions more carefully, saying, “I don’t think it’s a great thing to alienate half the population.”
The Road Ahead for Tesla
Tesla’s struggles go beyond just stock fluctuations; they reflect a deeper issue of brand perception and consumer confidence. While the company still has technological advantages and a loyal fan base, Musk’s growing political and social controversies may make it harder for Tesla to reclaim its former dominance.
If the stock continues to decline, will Tesla bulls once again step in to save it? Or is this truly the beginning of a long-term shift away from the once-beloved EV giant?
