Tesla struggles as DOGE controversy weighs on investor sentiment
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Tesla shares continued their recent decline, falling 2.4% in premarket trading to $256.69, extending a prolonged sell-off that has seen the stock drop 26% since February 20. Broader market weakness also contributed, with S&P 500 and Dow Jones futures down 0.5% and 0.4%, respectively.
Investor uncertainty has been exacerbated by the controversy surrounding DOGE (Department of Government Efficiency), the newly created entity led by Tesla CEO Elon Musk under President Donald Trump’s administration. The political implications of DOGE have triggered protests, adding an additional risk factor for Tesla investors. Interest in the issue peaked on February 20, when Google searches for "DOGE" surpassed those for "Tesla."
Despite the turmoil, Wedbush analyst Dan Ives remains bullish on Tesla’s long-term prospects, maintaining a Buy rating with a $550 price target. Ives believes Tesla is positioned to unlock trillions in value through advancements in AI-driven self-driving taxi services and humanoid robotics, which could be transformative for the company’s business model.
For now, sentiment remains fragile, with DOGE expected to remain a source of controversy until at least July 4, 2026. Investors will be closely watching for any shift in public perception and potential regulatory developments that could either ease or escalate concerns surrounding Musk’s political involvement.
Investor uncertainty has been exacerbated by the controversy surrounding DOGE (Department of Government Efficiency), the newly created entity led by Tesla CEO Elon Musk under President Donald Trump’s administration. The political implications of DOGE have triggered protests, adding an additional risk factor for Tesla investors. Interest in the issue peaked on February 20, when Google searches for "DOGE" surpassed those for "Tesla."
Despite the turmoil, Wedbush analyst Dan Ives remains bullish on Tesla’s long-term prospects, maintaining a Buy rating with a $550 price target. Ives believes Tesla is positioned to unlock trillions in value through advancements in AI-driven self-driving taxi services and humanoid robotics, which could be transformative for the company’s business model.
For now, sentiment remains fragile, with DOGE expected to remain a source of controversy until at least July 4, 2026. Investors will be closely watching for any shift in public perception and potential regulatory developments that could either ease or escalate concerns surrounding Musk’s political involvement.