The chair of electric-vehicle maker Tesla’s (TSLA) board of directors says investors and shareholders shouldn’t be concerned about CEO Elon Musk’s political activities.
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In a media interview, Tesla Board Chair Robyn Denholm dismissed any and all concerns that Musk’s political activities have hurt sales of the company’s electric vehicles. Denholm also said that Musk’s political engagement is his personal choice.
“What he does from a political perspective, in terms of his political motivations, is up to him,” said Denholm in an interview with Bloomberg television. “From a politics perspective, obviously we’re in a democracy, so everyone gets to voice their points of view.”
Backlash
Despite the board chair’s comments, there has been a severe backlash to Musk’s work earlier this year on behalf of the administration of U.S. President Donald Trump, as well as to Musk’s support of far-right political parties and viewpoints. Many Tesla owners vandalized and even burned their vehicles in protest. And Tesla’s sales have fallen by more than 40% in some markets around the world.
Despite these setbacks, Denholm said that she is confident in Tesla’s products and that political factors will not affect long-term consumer behavior as it relates to electric vehicles and other technologies. “My view is, over the long term, people buy things that they really love. Tesla vehicles are things people really love,” she said.
Is TSLA Stock a Buy?
Tesla stock has a consensus Hold rating among 34 Wall Street analysts. That rating is based on 14 Buy, 13 Hold, and seven Sell recommendations issued in the last three months. The average TSLA price target of $313.62 implies 19.25% downside from current levels.
