"Tesla Stocks Take a Hit: Declining Every Week Since Musk’s Washington Visit"

For seven consecutive weeks, Tesla has faced a troubling downward slide, with its shares plummeting to $270.48 by Friday, marking the longest losing streak in the automaker's 15-year history as a publicly traded company. This rough stretch has seen Tesla’s stock drop more than 10% just this past week, reaching its lowest point since Election Day, November 5, when shares closed at $251.44. From the euphoric high of $480 on December 17, the company has shed over $800 billion in market capitalization.

This sharp decline has caught the attention of Wall Street, with major firms like Bank of America, Baird, and Goldman Sachs revising their price targets. Bank of America slashed its target from $490 to $380, citing disappointing vehicle sales and the lack of any recent updates from Musk about the highly anticipated "low-cost model" Tesla fans have been eagerly awaiting. Similarly, Goldman Sachs cut its price target to $320, down from $345, also pointing to shrinking sales in key global markets such as Europe, China, and the U.S., especially in the first two months of this year. The firm also warned of increased competition in China, where local rivals don’t require additional software purchases for smart driving features like Tesla's Full Self-Driving (FSD) system, which remains a premium offering in the U.S.

In addition to sales concerns, Baird added Tesla to its “bearish fresh picks” list this week, highlighting potential production challenges as the company shifts to manufacture the new version of its Model Y SUV. Analysts at the firm also expressed concerns about supply-side issues resulting from production downtime.

While Tesla's operational difficulties are becoming more apparent, it’s Musk's involvement in Washington that’s amplifying investor uncertainty. After taking a key advisory role in the Trump administration, where he leads the Department of Government Efficiency (DOGE), Musk’s political actions have begun to cast a shadow over the brand. Known for his high-profile stances on social media, Musk has become the public face of the Trump administration’s effort to downsize the federal government, reduce spending, and streamline operations. At the same time, his controversial rhetoric on platforms like X, where he’s taken aim at judges and promoted inflammatory political narratives, has sparked backlash from both Tesla’s fanbase and critics alike.

This has led to rising anti-Musk sentiment in both the U.S. and Europe, culminating in protests and acts of vandalism at Tesla facilities. Even long-time Tesla advocates are questioning the implications of Musk’s politics on the company. An ethics-driven column on Cleantechnica recently pondered whether Tesla owners should consider selling their cars, and if the Tesla board should take action to distance itself from Musk's increasingly polarizing presence.

Despite the turbulence, some analysts remain cautiously optimistic about Tesla’s future. In a recent note, Wedbush Securities’ Dan Ives acknowledged that Tesla bulls are facing a "gut check moment" as they contend with the growing negative sentiment surrounding Musk and his role in the Trump administration. However, Wedbush also believes that the current sell-off presents an opportunity, adding Tesla to its "Best Ideas" list with a 12-month price target of $550. Ives remains hopeful that Musk will refocus his energy on Tesla and his other ventures later in 2025, which could help revitalize the brand.

Similarly, analysts at TD Cowen view Tesla’s struggles as part of the growing pains ahead of what could be a pivotal product cycle in 2025-26. They believe this period could serve as a launchpad for significant volume growth and renewed investor optimism, especially as Tesla gears up to deliver new, more affordable electric vehicles and possibly a fully autonomous robotaxi service.

As Tesla continues to navigate these challenging waters, the company’s future will likely depend on how Musk balances his political commitments, the company's product cycle, and the fierce competition in the EV market. While some see opportunity in the downturn, others are watching closely, waiting to see if Musk’s broader ambitions will ultimately undermine the brand he built.