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Fortune
Fortune
Christiaan Hetzner

Tesla’s Elon Musk dilemma: Polarizing CEO’s ‘political baggage’ is now weighing on sales, brand loyalty, investor confidence, and its stock price

A protester holds a sign depicting Elon Musk during a demonstration outside of Los Angeles City Hall to demonstrate for immigration rights on February 5, 2025 in Los Angeles. (Credit: Qian Weizhong—VCG/Getty Images)
  • Tesla’s brand favorability is at an all-time low, and Elon Musk’s controversial views and actions are alienating core customers, particularly in environmentally conscious markets, warned Saxo Bank’s global head of investment strategy. Tesla’s stock is down by more than a quarter since its mid-December peak and is the worst performer among the Magnificent Seven.

Elon Musk’s politics risk becoming a millstone around the neck of Tesla as the $1.1 trillion company struggles to reignite the supercharged growth it enjoyed in the past.

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