A movement against $Tesla Motors(TSLA)$ will take place on March 29 at 277 Tesla showrooms and Supercharger stations across the US. Initially targeting Musk's political activity, especially his close relationship with Trump and his role in "Department of Government Efficiency," the protests have turned violent.
Tesla stores have been shot at, cars burned, and Supercharger stations and owners' vehicles damaged. President Trump called these actions "domestic terrorism," and Attorney General Pam Bondi vowed to bring those responsible to justice.
The bulls' impact is so limited now?
The only notable Tesla bulls being Trump and his administration. U.S. Secretary of Commerce Howard Lutnick publicly urged people to "buy Tesla" stock during a television interview on Wednesday.
However, the bull seems to be causing more negative impact, making the public in the US and Europe dislike Tesla and Musk even more.
Record numbers of Tesla owners switching to other brands. Edmunds reports that after a peak in November 2022, Tesla’s new model purchases have significantly declined to the lowest levels since October 2022.
Scandal Everywhere: Hedge Funds Remain Cautious?
Since Trump’s election win in November 2022, hedge funds shorting Tesla have faced huge losses, totaling over $5 billion.
Short positions have dropped to 2.5% of Tesla’s public shares, far below the historical average of 23%. Kerry Goh of Kamet Capital Partners warns that shorting Tesla is risky due to its unpredictable price volatility.
How do you view the protests and political halo?
Will Tesla dip lower to $200?
What’s your target price?
Comments
As for Tesla’s stock, I do think the political drama and shifting consumer sentiment are adding downward pressure. If the trend of owners switching brands continues and demand weakens further, a drop to $200 isn’t out of the question. That said, Tesla’s stock has always been volatile, and with such a dedicated retail investor base, it’s tough to predict a clear bottom.
Given the current uncertainty, I’d remain cautious and closely monitor how these events impact Tesla’s fundamentals before making any major moves.
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The only notable Tesla bulls being Trump and his administration. U.S. Secretary of Commerce Howard Lutnick publicly urged people to "buy Tesla" stock during a television interview on Wednesday.
However, the bull seems to be causing more negative impact, making the public in the US and Europe dislike Tesla and Musk even more.
How do you view the protests and political halo?
Will Tesla dip lower to $200?
What’s your target price?