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By Andrew Stanton
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Christopher Tsai, a major investor in Tesla, has issued a warning to Elon Musk about how his involvement in politics is affecting the company's bottom line.
His remarks came in an interview with the Guardian newspaper, in which he said he hoped Musk's involvement with the Trump administration would be "short-lived" so he could invest more hours in Tesla.
Newsweek reached out to Tesla for comment via email.
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Why It Matters
Musk, the founder of Tesla, has taken on a visible role in President Donald Trump's second administration, leading the Department of Government Efficiency (DOGE), aimed at cutting unnecessary federal spending. Trump signed an executive order establishing DOGE on his first day back in the White House tasking it with "modernizing Federal technology and software to maximize governmental efficiency and productivity."
While conservatives praise DOGE as a means to cut what they view as waste in the federal government, critics have argued these cuts will diminish critical services for Americans and have raised concerns that the young engineers working on federal cuts lack relevant experience. Polls suggest that many Americans don't view Musk particularly favorably, even if they support some of the goals of DOGE.
What to Know
Tsai, an investor manager whose firm has pumped millions of dollars into Tesla, told The Guardian that Musk's political foray has sparked a negative response from the markets.
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The market is "reacting unfavorably to Elon Musk's recent involvement in politics," he said, adding that he still remains hopeful about the business' earning potential for investors. Still, Tsai said he hopes Musk's involvement in the Trump administration is temporary.
"I hope his involvement with [DOGE] is short-lived so he can spend even more time on his businesses," he said.
Tesla's stock has declined 38 percent so far in 2025, a sign of falling investor confidence in the company amid Musk's political involvement, sluggish sales and growing foreign competition in the electric vehicle (EV) market.
By midday on Monday, Tesla had dropped about 6 percent.
Sales have dropped as Musk's actions in the Trump administration continue to alienate potential customers. In 2024, Tesla sales dropped 1.1 percent, the company's first decline in over a decade, reported The Associated Press. Meanwhile, some Tesla owners are trying to sell their vehicles, causing a potential drop in prices on the used car market.
Tesla's stock did increase in value after Trump endorsed the brand last week, but the boost didn't bring it back to earlier peaks before Musk became more involved in politics.
There have also been reports of a wave of anti-Musk vandalism against Teslas.
What People Are Saying
Elon Musk, in a Fox Business Network interview, earlier in March, discussing Tesla's $16 billion stock loss: "But look on the bright side! Always look on the bright side of life!"
Ben Kallo, an analyst at Baird, to CNBC: "When people's cars are in jeopardy of being keyed or set on fire out there, even people who support Musk or are indifferent might think twice about buying a Tesla."
What Happens Next
It's unclear how Tesla and Musk will respond to the decline in the company's stock if it continues.
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