Hyperdrive
Musk’s Troubling Week Pushes Tesla Investors Closer to the Edge
- Elon Musk’s actions at Twitter ‘damaged’ his reputation
- EV demand set to slow as Musk is occupied with Twitter
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“Musk risk” has been weighing on Tesla Inc.’s stock for some time now. But it reached another level this week as the electric-vehicle maker’s mercurial leader stirred up even more controversy and sent the company’s shares plunging.
Tesla’s stock price sank 16% over the last five sessions for its worst week since the pandemic struck in March 2020. By comparison, the S&P 500 Index and Nasdaq 100 indexes declined less than 3%. The performance is even uglier looking further back, with the shares tanking 43% so far this quarter as prominent Wall Street analysts dial back their expectations for Elon Musk’s company and the electric-vehicle industry as a whole.