Tesla is currently facing uncertain times as it appears to have lost its once perceived invincibility. Investors are unsure about the future outlook of the stock, with Morgan Stanley suggesting that the price of Tesla could either triple to $800 or drop to $200 in the following months.
Simon Hale, a portfolio manager at Wellington Altus Private Wealth, faced issues with his compliance department due to the sharp rise in Tesla's value in relation to the investment portfolio managed by the institution. However, the recent significant drop of 15% in Tesla's stock price resolved his problem without any intervention on his part.
Elon Musk's actions, resembling Argentine president Javier Milei's approach of slashing government spending, and his support for Germany's far-right AfD party have garnered criticism and backlash in the United States, raising uncertainties about Tesla's recovery from its previous high status.
Tesla's stock has declined by 9% since the election day rally and by 46% since Trump's presidency began. Musk's attempts to rally support among his followers have faced challenges due to the recent controversies surrounding his decisions and alliances.
Recent discussions among Tesla shareholders on the X platform have shifted towards seeking reassurance amid the stock's turbulence, with small investors expressing confidence in buying more shares despite the selling of stocks by board members.
Hale revealed that Jewish investors have pressured him to sell off their Tesla holdings due to concerns over Musk's political alliances and recent controversies, causing some wealthy clients in Europe to express their disapproval.
The current decline in Tesla's stock price, termed as 'Tesla shame,' has created a differing impact compared to previous setbacks experienced by the company, such as after the Twitter acquisition in October 2022 when fears of stock liquidation prompted a price drop to $100 per share.