Musk’s Political Exit Results In More Volatility for Tesla Stock — Experts Answer Whether You Should Buy the Dip
Elon Musk has taken a step back from politics, and some investors are excited about the tech billionaire’s renewed focus on Tesla. Musk’s entrepreneurial successes and ability to think ahead are one of the main reasons that Tesla stock commands a high premium.
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Some people see Musk’s exit from politics as a good thing for the stock, while others still don’t view it as a buying opportunity. The recent spat between Musk and Trump has created even more uncertainty for the stock, but fear can create opportunities. Several experts shared their thoughts about the electric vehicle (EV) maker.
Tesla Must Overcome the Alienation That DOGE Created
Elon Musk’s involvement in the Department of Government Efficiency has stirred up controversy. Liberals make up a large percentage of EV buyers, and many people in this group adamantly turned against the tech billionaire.
Robert P. Johnson, PhD, certified financial advisor (CFA), CAIA, professor of finance at Creighton University’s Heider College of Business, views Musk’s DOGE departure as good for business, but he has to clear a few hurdles.
“More attractive, but there are a couple of problems. First, Musk himself has seemingly always divided his time between several endeavors — Space X, X (formerly Twitter), Neuralink, etc. Second, his DOGE involvement also negatively impacted Tesla in the sense that he alienated a large part of his current and potential owner base by aligning himself with Trump,” Johnson explained.
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While liberals have been turned off by Musk, he also risks losing conservatives due to a recent string of X posts.
“Now, his criticism of the ‘Big, Beautiful Bill’ may alienate potential buyers of Teslas who are supporters of Trump. In other words, Musk has seemingly alienated people on both sides of the political aisle,” Johnson added. “Wading into politics is a losing proposition for the CEO of a publicly traded company, particularly one with as high a visibility as Musk.”
Tesla Is More Than an Automobile Company
Musk committing more of his time to Tesla isn’t only a tailwind for its EVs. Tesla has been working on several projects, such as robotaxis and humanoid robots, that have the potential to deliver massive gains for patient investors.
Alex Black, chief marketing officer at EpicVIN, encourages investors to consider all of Tesla’s underlying businesses before making a decision.
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