Democratic Treasurers Urge Musk to Prioritize Tesla Amid Stock Plunge

Tesla's recent stock decline and weakened deliveries have sparked concern among investors and state officials, with eight Democratic state treasurers questioning whether CEO Elon Musk's political commitments, including his role in the Trump administration, are diverting his focus from the company’s core challenges. Analysts at Wedbush Securities have publicly advised Musk to step back from political activities and prioritize Tesla’s operational and strategic issues, warning that ongoing political entanglements could lead to lasting brand damage and reduced demand. The company faces additional headwinds from global protests, increasing tariffs, and a politicized brand image that has alienated some consumer groups. Despite these challenges, Wedbush maintains an optimistic outlook on Tesla’s long-term prospects in innovation, particularly in self-driving technology, but emphasizes that Musk’s upcoming decisions and the next earnings call will be crucial for restoring investor confidence. The treasurers and analysts alike stress the importance of focused leadership to safeguard Tesla’s reputation, market value, and role in the broader energy transition. Musk’s ability to navigate both political and business pressures is seen as pivotal for the future performance of Tesla and its impact on the EV industry.