U.S. President Donald Trump talks to the media, subsequent to Tesla CEO Elon Musk together with his son X Æ A-12, on the White Home in Washington, D.C., U.S., March 11, 2025.
Kevin Lamarque | Reuters
Greater than eight out of each 10 respondents to a Morgan Stanley survey imagine Tesla CEO Elon Musk’s controversial political actions are hurting his enterprise.
In complete, 85% of the 245 individuals polled by the agency imagine Musk’s foray into politics has both had a “destructive” or “extraordinarily destructive” affect on enterprise fundamentals. The vast majority of respondents additionally count on Tesla deliveries to fall this yr, in accordance with the survey.
Whereas a small sampling, these outcomes provide the most recent signal of mounting frustration with the billionaire entrepreneur as he is change into a rising determine in worldwide and American politics. It additionally comes at a pivotal level for Tesla’s inventory, with shares plunging almost 40% this yr.
When requested about Musk’s efforts with U.S. authorities effectivity and different political actions, 45% of respondents stated these actions had a “destructive” impact on the corporate. One other 40% stated they had been having an “extraordinarily destructive” affect.
Alternatively, 3% stated they had been “constructive” for the enterprise. In the meantime, 12% known as them “insignificant.”
To make certain, Morgan Stanley analyst Adam Jonas reported that his survey respondents are drawn from his electronic mail distribution checklist and shouldn’t be taken as a random consultant pattern. He additionally famous that the respondents aren’t essentially homeowners of Tesla inventory. The survey was taken over a 17-hour interval, beginning on Tuesday afternoon.
Jonas additionally requested about expectations for the corporate’s efficiency. In a separate query, 59% stated they anticipated Tesla would ship fewer automobiles to clients in 2025 in contrast with the prior yr. What’s extra, 21% of complete respondents stated they anticipated a decline of greater than 10%. That comes as some analysts have raised alarm that current reviews of vandalism may spook potential clients.
Simply 19% of responders stated they forecasted deliveries to rise in 2025, whereas one other 23% stated they might be flat between the 2 years.
Musk’s political profile has grown after his public assist of President Donald Trump within the runup as much as final yr’s election and his subsequent position main the Division of Authorities Effectivity, or DOGE. The Tesla government’s efforts to slash the federal authorities’s spending and workforce has drawn the ire of critics who see his group as working too rapidly and haphazardly.
Musk acknowledged in an interview with Fox Enterprise on Monday that his high-profile position in Trump’s administration meant he was operating his companies, which additionally embody X and SpaceX, “with nice problem.” That day, Tesla shares tumbled greater than 15% for his or her worst session since 2020.
Tesla in 2025
Regardless of the current nosedive, 45% of respondents stated they anticipate Tesla shares can be no less than 11% increased by the tip of the calendar yr. Round 36% count on the inventory to tumble one other 11% or additional by year-end, whereas 19% see the inventory staying inside 10% of its value round $220.
After a New York Occasions report final week unearthed criticisms of Musk’s group from members of Trump’s cupboard, the president supplied a vote of confidence on Tuesday. Trump evaluated 5 Tesla automobiles parked on the White Home after the president stated on social media that he would purchase one as an emblem of assist.
Trump additionally stated he would declare violence at Tesla dealerships to be acts of home terrorism.
