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Elon Musk's Political Rollercoaster: How One Feud Could Tank Tesla's Stock

Tesla 3D Icon Concept in Dark Mode. It is for you, Elon and fans 🖤

Silicon Valley’s favorite electric vehicle darling is riding a turbulent wave of political drama that’s sending Tesla’s stock into a nosedive.

Tesla’s stock has been taking a beating in 2025, plummeting nearly 27% and becoming the weakest performer among the “Magnificent Seven” tech stocks. The latest drama? A high-stakes political feud between Elon Musk and former President Trump that’s got Wall Street analysts hitting the panic button.

Political Tensions Spark Investor Concerns

Top financial analysts from Argus Research and Baird have downgraded Tesla’s stock, citing concerns about the potential fallout from Musk’s political maneuvering. “The war of words between President Trump and Elon Musk could further weaken demand for new Teslas,” warned Argus Research analysts, highlighting the growing unease about how personal political drama might impact the company’s bottom line.

Brand Damage and Uncertainty

Baird analyst Ben Kallo emphasized the “key-person risk” associated with Musk’s political activities, suggesting that the ongoing tension could potentially damage Tesla’s brand and create significant investor uncertainty. The downgrade comes at a critical moment, with Tesla preparing to launch its robotaxi program in Austin this week.

Wall Street’s Skepticism

Despite the challenges, Tesla isn’t completely down and out. The stock still maintains 30 buy ratings, though it’s significantly less loved compared to other tech giants. With shares trading near their average price target, investors are watching carefully to see how Musk will navigate these turbulent political waters.

One thing’s certain: in the world of tech and politics, nothing stays stable for long – especially when Elon Musk is involved.

AUTHOR: cgp

SOURCE: The Mercury News