Tesla's Plunge: Musk's Troubles Tank Stock?

Tesla stock is facing significant headwinds, according to financial expert Steve Rattner, who appeared on MSNBC’s “Morning Joe” to detail a concerning downward trend. Rattner presented data illustrating a stall in Tesla sales despite a broader surge in electric vehicle (EV) adoption, directly linking the company’s struggles to Elon Musk’s public image and associations.

Rattner highlighted Tesla’s initial period of rapid sales growth, establishing the company as a leading EV manufacturer. However, he noted a stagnation beginning in 2025, attributing it to increased competition from both domestic and international automakers. He also pointed to the aging designs of Tesla’s popular Model Y and Model S vehicles as a contributing factor.

The most recent data, according to Rattner, reveals a sharp decline in first-quarter sales – a 13 percent drop globally. This downturn is particularly striking when contrasted with the overall U.S. EV market, which experienced an 11 percent increase in sales during the same period. Tesla, conversely, saw a 9 percent decrease in U.S. sales.

Rattner argues that Musk’s declining popularity is now actively impacting Tesla’s bottom line. He suggests that investor enthusiasm was initially fueled by expectations of substantial government subsidies, but that sentiment has waned amidst Musk’s controversial public actions and associations, particularly his relationship with Donald Trump.

The analysis paints a concerning picture for Tesla investors. While the broader EV market is expanding, Tesla appears to be losing ground, potentially due to a combination of product lifecycle challenges and the reputational risk associated with its CEO. It’s a clear indication that brand perception and leadership can significantly influence even the most innovative companies, and that investor confidence isn’t guaranteed, even with a pioneering product. The situation warrants close monitoring, as Tesla’s ability to regain momentum will depend on addressing both its product offerings and the public image of its leader.