Electric vehicle (EV) maker Tesla’s (TSLA) CEO Elon Musk shared his honest thoughts on the ongoing vandalism at Tesla stores and Supercharger networks during an interview on Fox News’ “Special Report” with Bret Baier yesterday. Musk said that “a great wrong” was being done to Tesla people and customers, implying that the damage was being caused to Tesla staff, dealerships, and vehicle owners.
Importantly, Musk highlighted that Tesla is a peaceful company and all that it has done is manufacture great cars and products. He added that the protests and acts of violence were fueled by false propaganda pushed by the far left. Musk reiterated that they are the “real villains” and that the Trump administration will certainly go after them, as previously mentioned by the President.
Tesla’s Musk Grabs Headlines
The billionaire investor has been grabbing headlines ever since he openly supported Trump’s presidential campaign last year. While TSLA stock rallied in the initial phase following Trump’s victory, the narrative has changed drastically this year, with increasing criticism of Musk’s political choices.
People are outraged over Musk’s close ties with Trump and his role as the head of the DOGE (Department of Government Efficiency) committee, which is laying off government staff to save billions in taxpayer money. The company is facing severe backlash, including vandalism protests of burning Tesla autos and shootings at its stores. At the same time, Tesla’s car sales in Europe and China have dropped significantly due to Musk’s tarnished brand image.
Furthermore, there are conflicting views on the impact of Trump’s newly imposed 25% tariff on foreign-made cars. While Musk clarified yesterday that the tariffs are expected to have a “significant” impact on Tesla, some believe they may be a gift to him. Tesla is one of the few American automakers that domestically assembles all the cars it sells in North America, thus exempting it from the tariffs. Meanwhile, other legacy automakers such as Ford (F) and General Motors (GM) manufacture some of their popular models in Mexico, and hence, will be subject to the stricter tariffs.
Is Tesla a High-Risk Stock?
Wall Street prefers to remain on the sidelines on Tesla’s stock currently, owing to the challenges discussed above. On TipRanks, TSLA stock has a Hold consensus rating based on 14 Buys, 11 Holds, and 11 Sell ratings. Also, the average Tesla price target of $335.32 implies 22.8% upside potential from current levels. Year-to-date, TSLA stock has lost 32.4%.
