Tesla Faces Declining Sales Amid Musk's Focus on Other Ventures

Tesla's stock has recently experienced significant volatility, falling 30% over the past month, leading to a rise in short interest as institutional investors express skepticism about the company's future. Despite a slight uptick in share prices, CEO Elon Musk's focus on external ventures, including his role in the Department of Government Efficiency, has raised concerns about his leadership amidst declining sales, particularly in Europe. Musk's comments regarding an upcoming affordable electric vehicle have been met with cautious optimism, as analysts suggest this model could help Tesla regain market share against rising competition, especially from Chinese manufacturers. However, the company is still facing backlash from customers and protests linked to Musk's political activities, which have negatively impacted the brand's image. Analysts are divided on Musk's current influence and the sustainability of Tesla's high valuation, as the company continues to grapple with both internal and external challenges. As Tesla prepares for future launches, including the new model expected in 2025, investor confidence remains shaky amid these broader issues.