Musk's Political Role Causes 50% Tesla Stock Decline

Elon Musk has candidly acknowledged that his political involvement has negatively impacted both Tesla's stock performance and his personal wealth, with shares plummeting over 50% since December 2024. At a town hall in Wisconsin, he expressed that political backlash has contributed to a significant loss, costing him more than $100 billion this year alone. Despite these challenges, Musk remains optimistic about Tesla's long-term prospects and hinted that current stock prices may present a buying opportunity. Concurrently, Tesla is facing declining sales, particularly in Europe, where they fell 49% early in 2025, attributed to increased competition and an aging vehicle lineup. While Musk's alignment with conservative causes has drawn criticism from some lawmakers, it has not deterred certain Democrats from investing in Tesla, revealing a complex relationship between political stances and financial interests. Analysts continue to monitor Tesla's market share decline and the company's upcoming plans, like the launch of a new, more affordable vehicle model.