The decline
The headlines and the chart shows a 50% decline in the value of Tesla shares. Several factors have contributed to this.
According to the company's reports the sales have declined in several regions, on one side, the hype of the electrical brand has diminished and the involvement of Elon Musk in politics has people left wandering who is in charge of Tesla right now? The man who forced people to "work at the office or get fired" is the first one not showing up at the office and taking care of a different business, called politics. His controversial comments, behavior, being under the spot light and the cameras that amplify everything he says and does hasn't created a good image associated with the brand which has sparked the boycotts. The recent show room improvised at the white house didn't help much either. The brand is already associated with politics, and politics by nature are divisive and have contrasting emotions associated. So Tesla became a far right luxurious item, no longer the "Electric Auto for the Masses".
Tariffs and World Politics
The Tariffs and geopolitical instability have taken a toll in the overall market, the investors are nervous and they started taking the exit. Once the index goes down and the Magnificent 7 goes down, they drag the index down. So it's both, Tesla dragged the index and the index is dragging Tesla. NVDA didn't took well tariffs and the main contributors of the Mag7 are dragging everyone down.
Analyst Ratings
Several analysts have reduced the price target for Tesla, so we're not thinking about a new all time highs soon. This is what Trump called "A little disturbance".
The Mag7 Performance
We can see from the chart the performance of the mag7. The main contributors in a hypothetical portfolio have been NVDA, MSFT and TSLA. Tesla started a relative decline compared with the
SPX at the end of 2024. Once Elon started getting more involved in politics and less involved with the brand. Afterwards it's been all down hill.
What's next?
We have a systemic risk here, the secular bull market is currently in correction, and if the current politics plus the performance of the main components of the Index aren't strong enough to hold the correction, then we'll see a recession and a sharp decline in the market. Elon Musk is damaging the brand, he's the main shareholder, and he should take accountability of his actions and how they are hurting the company. He should step down and let someone else take care of Tesla. His public image is no longer what sparked the interest in Tesla. His multitasking CEO commitments and now his "Head of DOGE" position, aren't helping Tesla at all.
Removing Elon won't create a reversal in the trend, but at least this will give Tesla better credibility in the market and dissociate it with the political world.
The headlines and the chart shows a 50% decline in the value of Tesla shares. Several factors have contributed to this.
According to the company's reports the sales have declined in several regions, on one side, the hype of the electrical brand has diminished and the involvement of Elon Musk in politics has people left wandering who is in charge of Tesla right now? The man who forced people to "work at the office or get fired" is the first one not showing up at the office and taking care of a different business, called politics. His controversial comments, behavior, being under the spot light and the cameras that amplify everything he says and does hasn't created a good image associated with the brand which has sparked the boycotts. The recent show room improvised at the white house didn't help much either. The brand is already associated with politics, and politics by nature are divisive and have contrasting emotions associated. So Tesla became a far right luxurious item, no longer the "Electric Auto for the Masses".
Tariffs and World Politics
The Tariffs and geopolitical instability have taken a toll in the overall market, the investors are nervous and they started taking the exit. Once the index goes down and the Magnificent 7 goes down, they drag the index down. So it's both, Tesla dragged the index and the index is dragging Tesla. NVDA didn't took well tariffs and the main contributors of the Mag7 are dragging everyone down.
Analyst Ratings
Several analysts have reduced the price target for Tesla, so we're not thinking about a new all time highs soon. This is what Trump called "A little disturbance".
The Mag7 Performance
We can see from the chart the performance of the mag7. The main contributors in a hypothetical portfolio have been NVDA, MSFT and TSLA. Tesla started a relative decline compared with the
SPX at the end of 2024. Once Elon started getting more involved in politics and less involved with the brand. Afterwards it's been all down hill. What's next?
We have a systemic risk here, the secular bull market is currently in correction, and if the current politics plus the performance of the main components of the Index aren't strong enough to hold the correction, then we'll see a recession and a sharp decline in the market. Elon Musk is damaging the brand, he's the main shareholder, and he should take accountability of his actions and how they are hurting the company. He should step down and let someone else take care of Tesla. His public image is no longer what sparked the interest in Tesla. His multitasking CEO commitments and now his "Head of DOGE" position, aren't helping Tesla at all.
Removing Elon won't create a reversal in the trend, but at least this will give Tesla better credibility in the market and dissociate it with the political world.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.