Tesla is Having a Bad Year and it's All Elon's Fault

As Tesla stock craters, retail investors are buying near-record amounts of shares. If you have not been watching the news it's been a week for Tesla. New data from Edmunds show a record level of Tesla trade-ins for purchases of new vehicles in March, a month after new-model shopping considerations for Tesla electric vehicles hit their lowest point since October 2022. On top of that more than 45,000 Cybertrucks which is virtually every unit of the truck ever made were just recalled.

What you might now know is Tesla actually led the US in recalls last year which we rarely hear about.

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With all this information I can't believe Tesla bulls are reiterating the stock’s buy rating with minimal acknowledgment over these real concern over the company’s inaction regarding the free-falling stock.

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The X factor that's not really being talked about in the financial community is Elon Musk’s deep association with the Trump administration which has become a big problem for the car company without an easy solution. It's gotten so wild that we have seen a Tesla ad made at the White House with Trump and now we have Commerce Secretary Howard Lutnick telling people to buy the stock!

I saw a study from Itay Michaeli at TD Cowen Securities which shows that Tesla sales in red states compared with blue states is starting to show concerns over a growing political divide around Tesla’s brand are indeed legitimate so Elon and Tesla seems to have some real issues. I think Elon is problematic with allegations of ketamine use and erratic behavior does not see very CEO like and in the long run I think it will be his demise. This demise could also bring down his companies if he's not carful.