Electric vehicle company Tesla‘s stock has dropped around 35 percent since President Donald Trump’s inauguration.
Americans and car owners abroad have increasingly distanced themselves from the brand as Tesla CEO Elon Musk took on a major role in Trump’s newly formed Department of Government Efficiency (DOGE). But some lawmakers, including only one Republican, have recently purchased stock in the company as it sees a far cheaper price today.
Why It Matters
Musk is leading DOGE, and his involvement in Washington, D.C., according to experts, is directly linked to Tesla’s recent nosedive in the stock market and escalation of vandals targeting its vehicles.
What To Know
A growing list of lawmakers have purchased Tesla stock in recent weeks, according to their public financial disclosures.
• Democratic Representative Julie Johnson of Texas purchased from $16,000 to $65,000 in Tesla stock in early February.
• Democratic Representative Josh Gottheimer of New Jersey bought up to $45,000 in the company stock in February.
• Democratic Representative Gilbert Cisneros of California disclosed from $1,000 to $15,000 purchased in Tesla stock last month.
• Republican Representative Marjorie Taylor Greene of Georgia’s disclosures show that she also purchased from $1,000 to $15,000 in Tesla stock on March 7.
As the company’s value experiences major declines, some Tesla investors have called to remove Musk as CEO.
“Why has the board of directors sat quietly while so much brand value has been eroded to the point that cars are being set on fire?” Tesla investor Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, previously told Newsweek. “It’s been wildly negligent that the board has done nothing to curb Elon’s behavior, especially around extremist statements.”
At the moment, the board “solely functions at the benefit of Elon,” Gerber said, and has been “highly compensated” by Musk.
What People Are Saying
Kevin Thompson, finance expert and founder/CEO of 9i Capital Group, told Newsweek: “A big part of the selloff stems from Elon Musk’s highly visible involvement in politics and his alignment with the current administration. For many, that’s become a dealbreaker—not just ideologically, but emotionally. There’s been growing backlash over his role in government-related firings and what some view as a complete lack of empathy for the people impacted.”
Alex Beene, financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “There aren’t many positives to Tesla’s business at the moment. With more potential buyers both domestic and internationally being turned off by Elon Musk’s moves within the federal government, many investors have been fleeing the stock out of fears of continued declining sales and overall less interest in the brand. At the same point, others – including legislators and government officials – see potential in a rebound, especially when you consider Musk’s strong links to the new administration.”
What Happens Next
As many retail investors pull back, several elected officials may be buying into Tesla at the opportune time.
“It may suggest some folks still see Tesla as a value play. The price-to-earnings ratio has dropped dramatically, which makes it attractive on paper,” Thompson said, adding that the company is still heavily benefiting from taxpayer subsidies.
“While the stock may look cheap, we have to ask, what is it really worth without the government’s support?”
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