Retail Investors Cashed Out as Tesla Stock Plunged 50%, Blame It on Elon Musk

In the wake of a significant downturn in Tesla Inc. TSLA stock, retail investors are parting ways with their shares.

What Happened: The electric vehicle manufacturer’s stock has seen a dramatic 53% drop this year, prompting some investors to cut their losses.

According to a report, three ex-Tesla shareholders disclosed their reasons for selling their shares. A recurring theme was the controversial personality and political involvement of Tesla’s CEO, Elon Musk.

Jonathan Goodman, a business owner, initially viewed Musk’s outspoken nature as a boon for the stock. However, Musk’s ongoing association with President Donald Trump led him to sell his shares. Goodman indicated that he might consider repurchasing the stock if Musk were to step down, reports the Insider.

Mikhaela Delahunty and Dan Chan also expressed concerns about Tesla’s product recalls and the trajectory of its autonomous vehicle technology as contributing factors to their decision to sell.

“When Elon started having this alliance with Trump, I started to think about branding and how this would all play out for the typical Tesla consumer and the typical Tesla buyer,” Delahunty told the outlet.

Also Read: Trump, Musk, and Democrats Get Low Marks on Economy in NBC Poll

Delahunty bought shares of Tesla in August 2023 and sold them a year later, in August 2024. Similarly, Chan sold his Tesla shares in January 2025. According to him, the biggest factor in his decision was Musk’s leadership style and his political involvement.

“He does things that are very rash, which is not good for government because when you say something and you switch it, people can’t focus on their work when their jobs are at risk,” said Chan.

Why It Matters: Investor sentiment can significantly impact a company’s stock price, and in Tesla’s case, the controversial actions and statements of its CEO appear to be influencing investor decisions.

The concerns raised by these former shareholders highlight the potential risks associated with investing in a company led by a polarizing figure. Furthermore, the issues raised about Tesla’s product recalls and self-driving technology underscore the operational challenges the company faces.

These factors, combined with the current market volatility, seem to be driving retail investors away from Tesla.

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