Tesla (TSLA) Faces Growing Revolt from Shareholders and Consumers

Electric vehicle maker Tesla (TSLA) is facing a growing backlash among shareholders and consumers over CEO Elon Musk’s political activities in Washington, D.C.

Irate consumers have begun staging protests at Tesla dealerships across the U.S. On social media, consumer advocates are organizing the showroom protests using hashtags such as “Tesla Takeover” and “Tesla Takedown.” At the same time, images of damaged and vandalized Tesla vehicles are spreading across social media platforms.

As the consumer protests grow, so too are calls among shareholders for a change in leadership at Tesla. A growing number of shareholders are unhappy with Musk’s increasing focus on the U.S. government and politics, which they claim is taking his focus away from the electric vehicle maker. There are also concerns that Musk’s polarizing reputation is harming TSLA stock.

Sinking Share Price

The Tesla revolt among consumers and shareholders comes with the automaker’s stock down 30% from an all-time high reached last December. The share price has fallen more than 20% since U.S. President Donald Trump’s inauguration on Jan. 20, an event that Musk attended.

Shareholders and consumers are growing frustrated with Musk’s leadership of the U.S. Department of Government Efficiency (D.O.G.E), which has slashed government budgets and headcounts in recent weeks. At the same time, Tesla’s vehicle sales continue to decline in markets ranging from China to Europe.

Wolfe Research recently named Tesla one of the best stocks for investors to short.

Is TSLA Stock a Buy?

Tesla stock currently has a consensus Hold rating among 35 Wall Street analysts. That rating is based on 13 Buy, 12 Hold, and 10 Sell recommendations issued in the last three months. The average TSLA price target of $340.50 implies 4.31% downside risk from current levels.

Read more analyst ratings on TSLA stock