Tesla is facing Sales Road Bump as some sour on Elon Musk

On By Littum

Topline

As Tesla CEO Elon Musk grows further embedded in the White House, the public view of his electric vehicle weighs the share of the share in the election of investment investigation by President Donald Trump.

Key facts

“The negative downturn in consumers’ perception of Elon Musk … results in a headwind for the sale,” Stifel analyst Stephen Gengaro wrote in a Sunday note for clients.

Stifel lowered its price target for the Tesla share from $ 492 to $ 478 after the survey, maintained a purchase rating for Tesla and still indicates 33% upwards from Tesla’s $ 360 share price Monday.

After a monthly study, the adjustment came by Stifel and Morning Consult included in a Sunday note to Stifel clients revealed by respondents with a positive overview of Tesla minus those with negative).

It reflects increased skepticism about Musk’s political influence as some consumers withdraw from Tesla: A CBS News/YouGov survey published on Sunday that only 23% of Americans believe Musk and his Doge Commission should have “a” one mass “influence in the federal government.

And Reports Last week indicated A sharp decrease in Tesla sales across Europe, including a decrease of nearly 12% January in the UK, a 59% January fall in Germany and a fall of 63% January in France.

Tesla stock drain to 2-month low

Shares in Tesla fell as much as 3% Monday after the Stifel report before they sat down in a slimmer 0.5% daily loss in the middle of the morning, moving against strong gains for technology storage when Nasdaq advanced more than 1%. Tesla noted its lowest stock price since December 4 Monday. It extends Tesla’s annual loss to 11%, as stocks shop 26% under the highest highest set in December.

Musk Net Device Down Down nearly $ 60 billion from December -Toppen

Musk’s net worth was $ 396 billion on Monday, according to Forbes’ calculations. Although it is still most of every human being, and more than $ 140 billion more than the next richest person, Facebook co-founder Mark Zuckerberg, it achieved a $ 58 billion fall from his record starting point for a net worth of $ 454.5 billion dollars that achieved December 16th.

Key background

Tesla reported that the first year-over-year delivery of vehicles on the record last year as its supply of electric vehicles went down from 2023’s 1.81 million to 1.79 million. The company’s financial results were also down when its earnings report under the presentation last month revealed that Tesla’s profits fell more than 20% from 2023 to 2024. And yet the Tesla share is more than 90% in the last year, including 43% gain since The November election. The Tesla share has “been completely divorced from the basic elements,” noted skeptical JPMorgan -analysts led by Ryan Brinkman last month. To Brinkman’s point is Tesla’s price and earnings relationship, a commonly cited valuation metric that compares a company’s market value with its profits in the last 12 months, approx. 175, approx. seven times the Median S&P 500S company company’s 24 price-to-earnings.

Contra

Even Musk admits the concrete slowdown in Tesla’s central electric vehicle business, describes Last January as a shock between “Two large growth waves.” Instead, the bullish thesis of Tesla is largely on its prospects outside of simply selling its electric cars, including its leading efforts in applied artificial intelligence and its full self -driving initiative. Stifel says Teslas AI efforts are “critical of the story” of the Tesla share, which it still has a buying rating, while Musk said last month he is watching a $ 10 trillion market for the company’s Optimus Humanoid Robots.

Crucial quote

“If you buy the stock, you must accept that it will not be like a regular company. It is Elon’s private company, which for some reason is public, ”Ross Gerber, CEO of Asset Manager Gerber Kawasaki with a share of $ 100 million in Tesla, told Forbes.

Additional reading

ForbesTrump’s approval assessment of 53% in new poll – but Americans are less secure on Elon MuskBy Alison Durkee
ForbesIt will never happen ‘but a distracted musk should hand out CEO clothes in TeslaBy Alan Ohnsman