Tesla Stock Plunges 6.43% Amid Musk Controversy, Safety Concerns

On April 7, 2025, Tesla's stock experienced a significant drop of 6.43% in pre-market trading, reflecting a series of challenges the company is currently facing.

One of the key factors contributing to the decline is the political and brand-related issues surrounding Tesla's CEO, Elon Musk. Wedbush Securities analyst Daniel Ives, who has been a long-time bull on Tesla, recently downgraded the stock's target price by 43%, citing the brand damage caused by Musk's actions and the potential impact of U.S. President Trump's trade policies. Ives noted that Tesla has become a political symbol globally and urged Musk to take a more proactive role in addressing these challenges.

Additionally, Tesla has faced a series of high-profile incidents, including a recent accident in China where a Tesla vehicle crashed into a flower bed and damaged several other cars. While the company has not officially commented on the incident, it has raised concerns about the safety and reliability of Tesla's vehicles.

Furthermore, Tesla has seen a significant exodus of high-level executives, including David Lau, the vice president of software engineering, who recently announced his departure. Lau's exit follows the departures of other key executives, raising questions about the company's leadership stability and future direction.

These factors, combined with the broader market uncertainties and competitive pressures, have contributed to the recent decline in Tesla's stock price. As the company navigates these challenges, investors will be closely watching for any signs of improvement in its operational performance and strategic direction.