On October 10th, Tesla's stock price plummeted by a staggering 15.43% at the American market close—its largest single-day drop since 2020. This decline was largely attributed to CEO Elon Musk’s frequent engagement in political activities. In an interview with Fox Business, Musk admitted that running the company has become "extremely difficult," and investors hope he will refocus on business operations.

However, some analysts remain optimistic about Tesla's innovative potential and believe market undervaluation is temporary. Despite this optimism, a Forbes report indicated that Musk’s stock price fell below pre-Trump election levels, effectively erasing the 91% gains seen after the previous presidential election.
Since assuming his role in the Department of Government Efficiency (DOGE), Tesla's share value has evaporated by over $80 billion—approximately half its market capitalization. This decline also impacted broader US markets; tech-heavy Nasdaq experienced one of its largest single-day drops since 2022.

Musk told Fox Business that he plans to remain in the Trump administration for another year, despite investor hopes for his return to Tesla's leadership.
In addition to DOGE, Musk oversees social media platform X (formerly Twitter), space exploration company SpaceX, and brain-computer interface firm Neuralink. When asked about managing these diverse enterprises, Musk humorously admitted it was challenging: "I just want government efficiency; eliminating waste and fraud is progressing well—we save over $40 billion daily."

However, investors are primarily concerned with Tesla's performance.
CNBC reported that declining new vehicle sales and delays in launching affordable models have led several investment banks to downgrade their outlook on the company. For instance, Bank of America lowered its target price from $490 to $380 due to weak sales figures and a lack of product updates.

Furthermore, Tesla faces increasing competition from local Chinese brands that offer advanced driving systems at no extra cost, while Tesla’s Full Self-Driving (FSD) remains an expensive option. Baird added Tesla to its 'bearish new choice' list, citing production line adjustments for the Model Y as adding further sales pressure.
Beyond operational concerns, CNBC highlighted worries about Musk’s political stance and role in Trump’s government potentially damaging Tesla’s brand image.

For example, Musk has made controversial statements on social media platforms—including attacks against judges who did not support him or promoting misinformation aligned with Russian narratives. Anti-Tesla sentiment has risen recently both in the US and Europe, leading to incidents such as suspected arson at its factories.
Even CleanTechnica, a pro-environmental publication typically supportive of Tesla, suggested shareholders might consider selling their shares due to Musk's leadership.

Musk now reportedly sleeps in his DOGE office rather than supervising production lines—a change that has raised concerns among investors about reduced focus on the company compared with past dedication.
With SpaceX, X (formerly Twitter), xAI and Neuralink also under his purview along with being a father of multiple children, Tesla’s sales have dropped significantly across Europe and China leaving little to excite investors.

This dissatisfaction is reflected in market data; a recent informal poll by retail investment platform StockTwits found that 60% believed Musk's DOGE role was harming Tesla while only 25% thought it was media hype.
Garrett Nelson, senior equity analyst at CFRA Research noted shareholder concerns over Musk’s divided attention are valid: "It is clear he spends more time on government work than anything else." He predicts this will continue until mid-2026 and suggests other executives take up management roles to meet short-term goals.

However, even long-time investors like Ross Gerber suggest that Tesla needs a less politicized leader. Yet both Nelson and Gerber acknowledge that Musk leaving the CEO role could further damage stock prices.
"Tesla shareholders are in an impossible situation: while Musk's influence is crucial for company value, he also harms its image," said Garrett.

Dan Ives from Wedbush Securities believes despite market turbulence, "Musk will remain as Tesla’s CEO for five to seven years or more." He emphasized that the future of Tesla does not hinge on electric vehicle sales but rather autonomous driving and robotics.
"Over 15 years, Musk and Tesla have been underestimated multiple times by markets; this might be another instance," Ives concluded.

(Translated from an article authorized转载自远见杂志; Image source: Elon Musk)