Musk's Political Associations Spark Tesla Turmoil

Tesla faces a significant stock and sales decline amid growing competition and controversy over Elon Musk's political associations. President Trump supports Musk, yet Tesla grapples with sell-offs, vandalism, and social backlash. Analysts highlight the negative impact of Musk's politics and governmental cost-cutting endeavors on Tesla's market performance.

Amid one of Tesla's most severe single-day stock plunge, President Donald Trump rallied behind Elon Musk, promising to purchase one of Musk's vehicles. The endorsement came as Tesla struggles with formidable competition from Chinese electric vehicles and Musk's links to Trump and far-right causes.

Tesla's shares nosedived 45% over the year, hitting a low of USD 222.15, driven by global sales setbacks. Trump, on his Truth Social platform, accused a radical left conspiracy to boycott Tesla, describing the automaker as Musks's precious venture. Despite these challenges, the stock showed a modest recovery ahead of Tuesday's market opening.

Auto analysts point fingers at Musk's political alignments for the downturns in Tesla's stock values and car sales. Showrooms have been targets for protests, and vandalism incidents like the Colorado dealership attack have fueled tensions. Musk's ties to Trump's cost-cutting initiatives and support for divisive global politics appear to be alienating potential buyers, severely impacting Tesla's market share.

(With inputs from agencies.)