On Sunday, Tesla CEO Elon Musk admitted that his government role has negatively impacted Tesla’s stock price.
Yesterday, CNBC reported that during a town hall meeting in Wisconsin, Musk acknowledged that his leadership of the Department of Government Efficiency (DOGE), which is leading significant federal workforce cuts, has created challenges for Tesla and negatively affected its stock.
Musk played a pivotal role in President Donald Trump’s re-election by actively supporting his campaign. Trump appointed Musk to lead the newly formed DOGE at the White House, assigning him to oversee deregulation, government workforce reductions, and budget cuts.
At the town hall, Musk said, “What they’re trying to do is put massive pressure on me” and added, “and Tesla I guess, to stop doing this.”
Musk suggested that actions such as Tesla’s boycotts are being used to pressure him into ending his work at DOGE.
Musk admitted, “My Tesla stock and the stock of everyone who holds Tesla has gone, went roughly in half. I mean it’s a big deal.”
On Sunday, after Trump pledged to impose reciprocal tariffs on all countries starting April 2, Tesla’s stock dropped sharply when the market opened on Monday. Shares initially fell more than 5%, and despite a slight afternoon rebound, they still closed down at over 3%.
Year-to-date, Tesla’s stock has plunged over 30%, nearly halving from its all-time high reached last December.
Despite the decline, Musk emphasized that the current drop presents a long-term “buying opportunity,” echoing the views of some Tesla optimists.
Tomorrow, Tesla is scheduled to release its quarterly vehicle delivery numbers. On the same day, Trump’s reciprocal tariffs and new auto tariffs take effect. The outlook remains challenging.
On Sunday, Stifel lowered its target price for Tesla from $474 to $455, citing first-quarter delivery issues and ongoing anti-Tesla protests. However, the firm maintained its buy recommendation.
