Tesla Stock Falls Amid CEO Elon Musk’s Political Activity and Analyst Warnings

Tesla Inc. shares were trading at $295.38 as of 4:24 PM BST (11:24 AM ET) on July 9, down 1.98% from the previous close of $301.35, according to live market data. The decline brings the stock below the $300 mark as investors react to recent developments involving CEO Elon Musk.

Musk has engaged in a public dispute with U.S. President Donald Trump after announcing the formation of a new political party, following disagreements over a recently signed tax and spending bill. Musk was previously a major donor to Trump’s 2024 campaign and had been involved in White House advisory roles.

On July 8, Wedbush Securities analyst Dan Ives published a note urging Tesla’s board of directors to establish formal limits on Musk’s political activities. Ives said Tesla is entering a “tipping point” in its product development and called for Musk’s compensation to be tied to his time spent on company operations.

Tesla did not comment on the matter. In response to Ives’ suggestion, Musk posted on social media platform X, saying, “Shut up, Dan.”

Despite the events, Ives maintained a buy rating and $500 price target on Tesla. However, analysts at William Blair downgraded Tesla to “market perform” and lowered earnings forecasts, citing broader business concerns.

Tesla’s financial performance and investor guidance will be closely watched ahead of its upcoming earnings report.