Elon Musk at the opening of a Tesla plant in March 2022 in Germany.Photo:Christian Marquardt - Pool/Getty
Christian Marquardt - Pool/Getty
It’s a noticeable shift for the company, which saw stock prices explode following the presidential election, according toForbes. (The price has since gone up 8.35% as of Wednesday, March 12.)
Experts are also weighing on the impact Musk’s newfound political entanglements has had on Tesla. In addition to serving as CEO of the company, Musk, 53, currently heads the White House’s Department of Government Efficiency, which aims to modernize “federal technology and software to maximize governmental efficiency and productivity,” according to the President’sexecutive order.
“Elon Musk’s deep entanglement in politics has significantly impacted Tesla’s reputation,” Abigail Wright, a consultant at the business advisory firm Chamber of Commerce, toldNewsweek. “Instead of focusing on Tesla’s innovation and growth, he has become a polarizing figure, alienating key international markets where political sentiment plays a major role in consumer perception and decisions.”
Elon Musk and President Trump at the White House on March 11.Andrew Harnik/Getty
Andrew Harnik/Getty
She continued, “This, combined with stirring political controversies in other countries, ongoing trade tensions and his close ties to Trump, has contributed to Tesla’s stock decline. Had he channeled his energy into space exploration and technological advancements instead of politics, we might already be seeing breakthroughs that benefit humanity instead of stock declines and brand damage.”
Attorneys for DOGE, Tesla and Musk did not immediately respond to PEOPLE’s request for comment.
OnX, Musk responded to the historic downturn with one line: “It will be fine long-term.”
The recent drop in Musk’s net worth comes the same day his social media platform, X, saw widespread outages, according toDowndetector. His space travel company, SpaceX, was also still recovering from two recent failed test launches thatrained debrison parts of the Caribbean and the state of Florida.
Also on March 10, a federal judge ruled that the department is required to make its records public, an about-turn for the agency that has been mired in secrecy, according toForbes.
“I’m going to buy a brand new Tesla tomorrow morning as a show of confidence and support for Elon Musk, a truly great American,” Trump wrote on his social media platform,Truth Social, on Tuesday, March 11. “Why should he be punished for putting his tremendous skills to work in order to help MAKE AMERICA GREAT AGAIN???”
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Meanwhile, Dan Ives, a Wedbush analyst who has often supported Musk and his company, criticized the billionaire, telling him to “step up,” according toMarketWatch.
“Musk needs to step up as Tesla CEO at this critical juncture,” Ives said on Tuesday.
The Wall Street analyst noted that the president and Musk are “connected at the hip," according to the outlet.
He added that there has been “little to no sign of Musk at any Tesla factory or manufacturing facility the last two months and perception has become reality for Tesla shares.”
source: people.com
