Elon Musk’s Tesla Stake Crashes Amid Protests and Political Backlash

Hey, Traders on Trend! Buckle up because we’ve got a wild ride unfolding in the EV sector, and it’s all about Elon Musk and Tesla (TSLA). With Musk’s ties to the Trump administration igniting flames of discontent, let’s break down what this means for your trading strategy and investment outlook.

The $80 Billion Question

Since President Trump took office, Musk has watched his Tesla stake implode by more than $80 billion. As of now, Musk holds just under 410.8 million shares, accounting for about 12.8% of all Tesla shares. The backlash is bubbling over as accusations fly regarding his role in the Department of Government Efficiency and its impact on job cuts and government programs.

Political Football: Tesla Under Siege

Tesla didn’t just become a company facing competition; it morphed into a political battleground. The protests against Musk have exploded, transforming Tesla dealerships into hubs of agitation. On top of that, the stock is reacting to the noise. As of midday Monday, Tesla shares dropped 4.4% just that day and have plummeted 19.1% over the last three sessions. Overall, TSLA has seen a staggering 46.3% decline since January 2025.

Wedbush analyst Dan Ives—who’s traditionally been a bull on Tesla—recently slashed his price target for TSLA by 43% to $315. He cited the “double whammy” of political tensions and Trump’s tariffs as the catalysts behind this downward trend. Ives emphasizes that Tesla has become a “political symbol,” and that’s a troubling development for its stock price and brand integrity.

Protests and Counterprotests: A Divided Landscape

What’s even more fascinating is how the protests against Musk have gained traction on the streets while simultaneously igniting counterprotests. For instance, on March 29, organizers labeled as the “Tesla Takedown” rallied against Musk with substantial presence at Tesla service centers. In contrast, pro-Musk supporters also showed up. For instance, the Alachua County Republican Party hosted a counterprotest in Gainesville, Florida, where about 150 people turned out in support of Musk.

This division shows the polarizing nature of Musk’s persona and leadership style. From people feeling empowered to stage protests to others passionately defending him, the narrative is multi-faceted and chaotic. They’re battling for hearts and, likely for wallets, as the stock reflexively responds to public sentiment.

Sales Falling Amidst Rising Competition

As traders, we should be acutely aware of Tesla’s slipping sales numbers coupled with the escalating competitive landscape. They are grappling not only with internal PR disasters but also the potent challenge posed by existing and new entrants in the EV market. Investors should STRONGLY consider these factors when evaluating their positions.

Investor Sentiment and Analyst Outlook

Currently, of the 57 analysts covering Tesla, the outlook remains mixed—29 are bullish, while 15 are neutral, and 13 are bearish. Ives’ adjusted price target indicates a potential 38% upside from current trading levels, making it a subject of keen intrigue in the trading community.

And let’s not forget—Musk is still the world’s richest man, with a net worth exceeding $300 billion. Though he appears down and out on the Tesla front, the question remains—how will he pivot? Will he focus back on engineering and innovation to steer Tesla away from these turbulent waters, or will he continue to act as a magnet for controversy?

Actionable Takeaways

• Monitor Political Developments: Keep an eye on how Musk’s political associations impact Tesla. This is a prime example of how external factors can ripple through to a stock’s volatility.
• Watch for Support Levels: With less than optimistic analyst ratings, determine your risk tolerance and look for key support levels in TSLA.
• Consider the Long Game: While this marked downturn can tempt quick trades, assess the long-term potential of Tesla and its capabilities in the EV sector.

In conclusion, Tesla’s current situation exemplifies the intersection of politics, market sentiment, and stock performance. The road ahead for TSLA may continue to be rough, but it’s precisely in these turbulent times that savvy traders can find opportunities.

Stay Ahead of the Trend

Keep your eyes peeled and your trading tools at the ready. This might be an opportune time to either optimize your current positions or step back and reassess your strategy in light of these developments. As always, traders, stay savvy, stay informed, and keep trading on trend!