Investor confidence in Tesla wavers amid broader market pressures

Billionaire Elon Musk might be riding high in his role with the Trump Administration but it’s drawing growing concerns about his ability to steer Tesla in the right direction. 

First things first: As the CEO, Musk has been widely credited for Tesla’s rise to global dominance in the EV market—and rightfully so—he’s the brand’s most influential spokesperson. However, in recent months, his work outside of Tesla has raised concern about the future of Tesla under his leadership. 

• Tesla shares are down 25% (year-to-date) so far in 2025, with stock dipping on Thursday for the sixth straight trading session.

• On CNBC’s Money Matters, Barclays Research Analyst Dan Levy likens Tesla’s stock to bitcoin, attributing Tesla’s post-election 14% rise to speculative assets, while predicting tough first-quarter earnings for the company.  

• Levy also sees Tesla’s “fundamentals” starting to matter “somewhat” and expects the company to face some headwinds to launching fully autonomous cars in China.   

Between the lines In addition to the company’s self-driving vehicle strategy, early Tesla investor, Ross Gerber, expects Tesla shares to fall 50% in 2025 for other reasons, including slowing vehicle sales (down 45% in Europe and 15% in China), the company’s premium valuation status, and the distractions from Musk time in the White House.   

• Musk’s polarizing position with DOGE (Department of Government Efficiency)—cutting what the Trump Administration claims has been bloated spending in the federal government—has become the role he is more prominently known for publicly.  

• For example—Musk took to his social media platform X to share more specific details of his plans for upgrading the FAA’s control systems with his company Starlink if granted the contract. 

It’s difficult to measure the exact impact that Musk’s association with Trump is having on the Tesla brand overall. However, 49% of Americans hold negative views of Musk, and 32% of U.S. buyers "would not consider" buying a Tesla, up from 27% a year ago.

Why it matters: The potential long-term impact of his polarizing work with the Trump Administration—which appears to be just heating up—could affect the electric carmaker’s sales for years to come, especially as competition in the mass market EV segment grows.

Become an automotive insider in just 5 minutes.

Get the weekly email that delivers transparent insights into the car market.

Join 90,000+ others now, it's free:

Experian Automotive discovered that 61% of dealer files have data issues, including outdated vehicle ownership, incorrect names and addresses, or wrong email addresses.

Life changes, such as new jobs, homes, or children, can make it challenging to keep up with your customers.

The solution? Ensure your data is accurate! Experian Automotive's first-party data management solution helps clean, verify, and enrich customer data, maximizing your marketing efforts.

By maintaining accurate data, you can better connect with your customers and stay ahead in the competitive automotive market.

Don't let data hygiene issues hold you back—take the first step towards better customer engagement with Experian Automotive's comprehensive first-party data management solutions!