Tesla (TSLA) investors are worried. A Morgan Stanley (MS) survey found that 85% of respondents believe Elon Musk’s political involvement is hurting the company. CNBC reports that 45% called the effect “negative,” while another 40% said it was “extremely negative.” The timing couldn’t be worse. Tesla shares have already plunged nearly 40% this year.
Tesla Deliveries Expected to Decline in 2025
It’s not just politics that have investors spooked. The survey also revealed that 59% of respondents expect Tesla to deliver fewer cars this year. Worse, 21% predicted deliveries would drop by more than 10%. Reports of vandalism against Tesla vehicles have only added to concerns.
Musk Admits Struggles Running Tesla while in Government
Musk’s growing political profile isn’t helping. His role in President Donald Trump’s administration has made him a target. CNBC reports that Musk admitted he is now running Tesla “with great difficulty.” Investors aren’t convinced he can juggle both worlds.
On Monday, Tesla shares crashed 15%, their worst single-day loss since 2020.
Is Tesla a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 12 Buys, 12 Holds, and 12 Sells assigned in the past three months. Furthermore, the average TSLA price target of $332.97 per share implies 36.6% upside potential.
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