Tesla Slumps Amid Elon Musk's Political Affiliations, GameStop Rises on Bitcoin Speculation

Tesla shares fell nearly 1% in pre-market trading, amid concerns over CEO Elon Musk's political affiliations and public image, which may deter potential customers and harm sales. Stifel analyst Stephen Gengaro reduced his price target from $492 to $474 and cut his 2025 revenue forecast by 5%. GameStop shares rose 1% in pre-market trading, fueled by speculation that the video game retailer could invest in bitcoin.

Tesla, the American electric vehicle (EV) giant, reported a decline in pre-market trading on Monday, with shares falling nearly 1% [1]. The dip comes amid concerns over CEO Elon Musk's political affiliations and their potential impact on the company's image and sales.

According to a report from Benzinga, Tesla sold 63,238 China-made vehicles in January, marking a decrease of 11.5% from the same period last year [1]. Although the drop in sales could be attributed to the Chinese New Year holidays, which ended at the end of January, the impact of Musk's public image cannot be overlooked.

Recent events, such as Musk's controversial Twitter activity and his association with far-right political figures, have raised concerns among investors and potential customers. These concerns may deter some from purchasing Tesla vehicles, leading to a negative impact on the company's sales and revenue.

Analyst Stephen Gengaro of Stifel reduced his price target for Tesla from $492 to $474 and cut his 2025 revenue forecast by 5% [2]. Gengaro's revised outlook reflects the growing uncertainty surrounding Tesla's financial performance in the wake of Musk's public image concerns.

In comparison, Tesla rival BYD Co. reported a significant increase in sales of new energy passenger vehicles in January, with sales rising by nearly 47.5% [1]. BYD's strong performance highlights the potential impact of Tesla's sales decline and the importance of addressing the concerns surrounding Musk's public image.

Tesla shares closed at $374.32 on Thursday, marking a drop of 1.3% year-to-date [1]. The stock's decline in pre-market trading suggests that investors are taking a cautious approach to the company in the wake of these concerns.

References:

[1] Benzinga. (2023, February 20). Tesla Drops 1.5% in Premarket After Sales of China-Made EVs in January Drop 11.5%. Retrieved from https://www.benzinga.com/tech/25/02/43556649/tesla-drops-1-5-premarket-after-sales-of-china-made-evs-in-january-drop-11-5-yoy

[2] Benzinga. (2023, February 20). Tesla Shares Slip in Pre-Market, a Day After Massive 22% Rally. Retrieved from https://www.benzinga.com/markets/equities/24/10/41539590/tesla-shares-slip-in-pre-market-a-day-after-massive-22-rally-whats-going-on