Elon Musk’s increasing involvement in right-wing politics and role as President Trump’s cost-cutting czar seems to be diverting his attention from Tesla at a critical time for the company. Despite a global market growth for electric vehicles last year, Tesla’s car sales fell by 1 percent, and Musk has not addressed this underperformance or provided a concrete plan to revive sales.
With his focus on political activities and ties to the Trump administration, Musk’s responsibilities running multiple companies – including Tesla, SpaceX, X, and xAI – are causing concerns among investors and analysts. These concerns have led some to question whether he is spread too thin, impacting the essential day-to-day operations of Tesla.
Tesla’s share price has declined 25 percent since mid-December, and Musk’s political activities seem to be alienating customers both domestically and internationally. Additionally, Tesla’s reliance on two vehicle models for 95 percent of its sales highlights the need for a more affordable model to revive sales. Musk has delayed plans for a lower-cost car indefinitely, further raising doubts about Tesla’s future.
As Tesla struggles with stagnant sales and market share losses, investors are questioning Musk’s priorities and lack of interest in the core business of selling cars. Environmentalists are particularly concerned that Musk’s shift towards politics may be detrimental to advancing electric vehicle production and combating climate change.
Overall, Musk’s entanglement in politics appears to be impacting Tesla’s performance and long-term viability, raising questions about the leadership and strategic direction of the company moving forward.
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