Tesla Stock Plummets 20% Amid Musk's Controversial DOGE Involvement

Tesla's stock and sales are under pressure as CEO Elon Musk's focus on the Department of Government Efficiency (DOGE) raises concerns among analysts about brand deterioration. Wedbush Securities analyst Dan Ives remains optimistic with a $550 price target, but others, like Miller Tabak's Matt Maley, warn that Musk's divided attention could harm product development. Meanwhile, Tesla's presence in China has drawn scrutiny, as courts consistently side with the company in lawsuits against vehicle owners, reflecting its close ties to the Chinese Communist Party. Additionally, Tesla's market share is threatened as a Chinese automaker surpassed it in UK sales for the first time, signaling a decline in interest in Musk's brand. Analysts are also noting a shift in public perception of Musk, particularly among potential Democratic EV buyers, following controversies surrounding his political affiliations and actions. Overall, Tesla's challenges are compounded by a significant sales drop across Europe, attributed to an aging vehicle lineup and increased competition from new electric models.