Tesla (TSLA) showrooms have become focal points for protests as CEO Elon Musk’s deep cost-cutting moves and political moves ignite public fury. The demonstrators have gathered in cities like San Francisco and New York, urging customers to reconsider purchasing Tesla vehicles. The movement, fueled by hashtags like #BoycottTesla and #TeslaTakeover, is gaining traction on social media.
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Musk’s Leadership Under Fire
Critics argue that Musk’s growing political engagement is drawing Tesla into controversy. The mass layoffs in government agencies through his Department of Government Efficiency (Doge) have fueled public debate.
Beyond job cuts, Musk’s political actions have drawn further criticism. He has openly supported far-right political groups in Germany and called for the removal of UK Prime Minister Sir Keir Starmer. These moves have intensified public backlash, raising concerns about how his opinions are affecting Tesla’s reputation.
Investors Are Getting Nervous
The controversy is also rattling Wall Street. Tesla’s stock has plunged 12% in 2024, with analysts pointing to Musk’s political distractions as a major factor. Some investors worry that Tesla is losing focus as its CEO splits his attention between business and government affairs. Even within the company, some employees believe Tesla might perform better without Musk at the helm.
Tesla has yet to respond to the growing protests. But with showroom disruptions escalating and Wall Street on edge, the pressure on Tesla seems to be mounting.
Is Tesla Stock a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 12 Holds, and 10 Sells assigned in the past three months, as indicated by the graphic below. The average Tesla price target of $340.50 per share implies 4.31% downside risk.
