Prominent technology analyst Daniel Ives says that investors are growing increasingly “exhausted” by Tesla (TSLA) CEO Elon Musk’s political entanglements.
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In a note to clients, Ives, who is the global head of technology research at Wedbush Securities, writes that, “While the core Musk supporters will back Musk at every turn no matter what, there is broader sense of exhaustion from many Tesla investors that Musk keeps heading down the political track.”
The comments come after Musk announced over the weekend that he has formed a new political party, called the “America Party,” and plans to run candidates in the 2026 mid-term elections to be held in the United States.
Lack of Focus
In his note, Ives said that Tesla shareholders are growing increasingly worried about Musk’s lack of focus on the electric vehicle maker as he spends more time in the political arena. “Musk diving deeper into politics and now trying to take on the Beltway establishment is exactly the opposite direction that Tesla investors/shareholders want him to take during this crucial period for the Tesla story,” wrote the analyst.
Indeed, the electric vehicle maker recently reported a 14% year-over-year decline in its car deliveries in the second quarter, missing expectations by a wide mark. The company is facing rising competition from other automakers, especially in the key market of China. There is also a consumer backlash against Tesla over Musk’s political involvement.
TSLA stock has declined 27% this year.
Is TSLA Stock a Buy?
The stock of Tesla has a consensus Hold rating among 35 Wall Street analysts. That rating is based on 14 Buy, 12 Hold, and nine Sell recommendations issued in the last three months. The average TSLA price target of $293.09 implies 0.03% downside from current levels.
