Did Elon Musk’s Controversy Cause Tesla’s Stock To Decline?
Tesla’s year has started on a rocky path, with its stock plunging 26% since Elon Musk’s infamous salute. This steep drop has fueled speculation—is this an investor-led boycott, or is Tesla’s stock simply correcting after years of overvaluation?
The WallStreetBetsELITE subreddit exploded with theories, with some users arguing that Tesla’s core buyers—liberal, eco-conscious consumers—are turning their backs on the brand. Others believe this is just market forces at play, driven by increased competition from BYD, declining European sales, and Musk’s unpredictable leadership.
Tsla is -26% since Elon did the salute. Is there an actual boycott or just fud?
byu/bruhlmaocmonbro inWallStreetbetsELITE
Was Tesla’s Sales Drop: A Sign of Boycott?
Was Tesla’s Sales Drop: A Sign of Boycott?Tesla’s European sales have plummeted by 50%, while EV sales overall have risen by 34%. This means Tesla’s losses are not just due to a slowing EV market, but rather a shift in consumer preference.
Reddit users had some strong opinions:
- “Tesla went from trendy to a brand you don’t want to be associated with.”
- “The people who once championed Tesla are done with Musk. And conservatives still don’t want EVs.”
- “BYD is offering $11,000 electric cars, and Tesla is still trying to charge $40K. The market is moving on.”
With more affordable competition rising and Tesla’s reputation in freefall, it’s no surprise that investors are getting nervous.
Musk’s PR Problem: A Self-Inflicted Wound?
Elon Musk’s erratic behavior continues to alienate Tesla’s core market. From spreading conspiracy theories on X to publicly dismissing entire countries, Musk’s antics seem to be catching up to him.
One Redditor summed it up best:
- “The guy’s entire business is built on the goodwill of progressives. And he’s done everything he can to turn them against him.”
Even conservative audiences aren’t picking up the slack. Tesla trucks still aren’t appealing to rural buyers, and as one comment put it:
- “I live in deep red Texas. My family thinks Elon is a genius but Teslas are for ‘tree-hugging liberals.’”
Stock Overvaluation: Was This Inevitable?
Even before this controversy, Tesla’s stock was seen as massively overvalued. With a P/E ratio of 149.75, Tesla’s valuation made little sense compared to competitors like Toyota.
Many investors believe the drop was bound to happen. One comment noted:
- “It’s just Tesla finally being priced realistically. It’s not a boycott, it’s reality.”
Final Thoughts: Can Tesla Recover?
Whether Tesla’s stock crash is a boycott or market correction, one thing is clear—the brand is in trouble.
Musk’s reputation is deeply tied to Tesla, and if investors and customers continue losing faith, Tesla could struggle to recover.
What do you think, Black Cosmopolitans? Is this a real boycott, or just the inevitable collapse of an overhyped stock?
