Investors see Musk's political activities as negative for Tesla's performance

A survey found that many investors in the U.S. stock market view the political activities of Elon Musk, the CEO of Tesla, as a factor negatively impacting Tesla.

According to U.S. economic media CNBC and Investing.com on the 12th (local time), Morgan Stanley analyst Adam Jonas conducted a survey of 245 investors the day before, in which 85% of respondents answered that Musk's political activities have a "negative" or "very negative" impact on Tesla's business fundamentals. Specifically, 45% of respondents said "negative," while the remaining 40% expressed the view that it is "very negative."

While the survey sample size is small, CNBC noted that these results show recent signs of rising public discontent toward Musk as he has emerged as a prominent figure in U.S. and international politics. In the U.S., there is particularly backlash against Musk leading the Department of Government Efficiency (DOGE), which has been scaling back federal agencies and implementing large-scale layoffs, resulting in a boycott targeting Tesla and attacks on Tesla vehicles.

In the Morgan Stanley survey regarding Tesla's sales performance outlook for this year, 59% of respondents anticipated a decline compared to last year, while 21% expected a decrease of more than 10% relative to last year. Only 19% of respondents expected Tesla's sales volume to increase compared to last year, and the remaining 23% projected it to be similar to last year.

However, regarding the direction of Tesla's stock price, more investors believed it would rise rather than fall further. 45% of respondents predicted Tesla's stock price would increase by more than 11% by the end of the year, while about 36% of investors anticipated a decline of more than 11%. The remaining 19% of respondents expected it to fluctuate around the $220 mark.

Tesla's stock price plunged 15.4% to $222.15 on the 10th, then rebounded by 3.79% on the 11th, and rose significantly for the second consecutive day on the 12th. As of 1:30 p.m. in the New York stock market, it was trading at $250.53, up 8.65% from the previous day. The day before, President Trump indicated he would purchase one of five Tesla vehicles displayed at the White House, and praised the Model S sedan as beautiful and excellent after getting into it.

Moreover, when asked by a reporter at the White House whether people attacking Tesla stores should be classified as "domestic terrorists," President Trump replied, "I will do that," adding, "They are harming a great American company. We will stop them."