Tesla Shares Decline as 41% of Electric Vehicle Owners Plan to Steer Clear of Brand Due to Political Reasons
Poll Results Impacting Tesla: Tesla's shares dropped nearly 2% following a Global EV Alliance poll indicating that 41% of EV drivers worldwide would avoid the brand due to political concerns, particularly in the U.S. and Germany.
Elon Musk's Political Controversies: The poll coincides with Elon Musk's recent political controversies, including his brief role in the Trump administration and support for far-right movements, which have led to calls for boycotts.
Sales Performance Amidst Challenges: Despite the negative sentiment, Tesla reported a record delivery of 497,099 vehicles in the third quarter, driven by a rush to take advantage of a federal EV tax credit before it expired.
Market Competition and Analyst Ratings: Tesla is losing ground in the South American market to Chinese competitors, while analysts maintain a Hold consensus rating on TSLA shares, indicating potential downside risk.
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- IPO Overview: Billionaire Elon Musk's SpaceX has filed for an IPO with the U.S. SEC, targeting a valuation exceeding $1.75 trillion and aiming to raise up to $75 billion, potentially making it one of the largest public offerings in history if successful by June 2026.
- Tesla's Indirect Investment: Tesla has received government approval to convert its investment in Musk's xAI into a small stake in SpaceX, meaning Tesla shareholders will benefit indirectly from SpaceX's growth, with its value set to be publicly reflected in Tesla's assets post-IPO.
- Retail Investor Opportunities: SpaceX plans to allocate up to 30% of shares to retail investors, tripling the typical IPO norm, allowing Tesla's loyal retail investor base direct access from day one, enhancing their investment opportunities.
- Potential Merger Outlook: Wedbush analyst Dan Ives predicts a possible merger between Tesla and SpaceX as early as 2027, referring to this combination as the “holy grail” that could connect both disruptive tech companies within a single AI-driven ecosystem, showcasing significant strategic potential.
- Capital Injection: Rivian has secured a $1 billion investment from Volkswagen as part of a larger $5.8 billion funding plan, which will support the launch of a more affordable electric truck, enhancing its market competitiveness.
- Technological Collaboration: Volkswagen's successful testing of Rivian's technology not only provides financial backing but also indicates the recognition of Rivian's technology within the industry, further advancing its supplier strategy.
- Market Positioning: Unlike Tesla, Rivian aims to be both a vehicle manufacturer and an industry supplier, which broadens its sales opportunities and enhances the returns on its technology investments through this dual strategy.
- Competitive Landscape: In an increasingly competitive electric vehicle market, Rivian's success hinges not only on financial support but also on the effective execution of its supplier strategy to ensure long-term survival and growth.
- Leasing Market Risks: A wave of off-lease EVs is expected to return with values approximately $10,000 lower than projected, potentially costing the finance arms up to $8 billion, which could significantly impact overall industry profitability.
- Surge in Supply: By 2028, around 800,000 EVs are projected to hit the used market, leading to oversupply and further price depreciation, which may put additional financial strain on leasing companies.
- Tesla's Market Dominance: Tesla's leasing volume is substantial, with nearly 229,000 EVs leased last year, far exceeding the combined totals of General Motors and Ford, highlighting its strong influence in the industry.
- Financial Management Strategy: Despite industry challenges, Tesla mitigates its financial risk by managing a portion of its lease portfolio through partnerships with third-party lenders, allowing investors to remain cautiously optimistic while monitoring market developments in the coming years.
- Leasing Market Risks: Tesla is expected to see a wave of off-lease EVs flooding the market in the coming years, with industry experts projecting these vehicles to return at values approximately $10,000 lower than anticipated, potentially costing the industry about $8 billion.
- Depreciation Trends: According to Cox Automotive, by 2025, a three-year-old EV will maintain only about 40% of its original value at auction, a significant drop from 90% in early 2022, indicating pressure on the used EV market.
- Tesla's Market Dominance: Tesla dominates the EV leasing market, having leased nearly 229,000 vehicles last year, which is significantly more than the combined total of General Motors and Ford, highlighting its strong industry influence.
- Investor Confidence Reminder: Despite the challenges posed by off-lease EV depreciation, Tesla's finance arm collaborates with third-party lenders, allowing it to mitigate most of the leasing losses, suggesting that investors need not panic just yet.
- Jobs Report Surprises: The March jobs report revealed significantly stronger job growth than anticipated, leading to increased investor concerns about an overheating economy, which triggered a decline in the futures market and affected overall market sentiment.
- Tesla's Stock Decline: Influenced by the overall market sentiment, Tesla's stock tumbled on Thursday, reflecting investor worries about overvalued tech stocks, which could lead to short-term capital outflows.
- Market Signal Analysis: The robust employment data may raise expectations for Federal Reserve interest rate hikes, prompting investors to monitor potential impacts of future monetary policy changes on the stock market, especially in a high-inflation environment.
- Investor Sentiment Fluctuation: While the strong jobs report bolstered confidence in economic recovery, it also raised concerns about a market correction, potentially leading to increased volatility in the short term.
- Rocket Recovery Milestone: In October 2024, SpaceX successfully landed a previously launched rocket, marking a historic first that signifies a major breakthrough in aerospace technology, likely attracting increased investor interest in the space sector.
- Massive IPO Potential: SpaceX is projected to reach a valuation of $1.75 trillion, and if it goes public, it would become the largest IPO in market history, expected to have a profound impact on space-related stocks, similar to Tesla's influence on the electric vehicle market.
- Stock Price Surge: Following the news of SpaceX's impending IPO, stocks of companies like AST SpaceMobile, Rocket Lab, and Firefly Aerospace surged by 12%, 11.78%, and nearly 20% respectively, reflecting growing market confidence in the space economy.
- Reduced Launch Costs: SpaceX's reusable rocket technology is set to significantly lower launch costs, with traditional launches costing up to $1.5 billion compared to SpaceX's average of $62 million, and further reductions are anticipated, promoting sustainable growth in the aerospace industry.











