As Tesla’s stock price continues to plummet while tech billionaire Elon Musk barrels ahead with his cost-cutting overhaul of the federal government, frustrated investors are growing concerned that their CEO is missing in action.
That’s according to a new report in Business Insider, which highlighted steep declines in shares in each of the last seven weeks since Musk began his Washington D.C. job as head of President Donald Trump’s Department of Government Efficiency initiative.
And the “cumulative damage is stunning,” the report said. “At Monday lows — amid a 4% sell-off for the tech-heavy Nasdaq — Tesla stock had plummeted 52% from a mid-December record high, and was down more than 40% year-to-date.
“Much of the angst among Tesla investors stems from concerns that Musk doesn't appear to be committing enough time to the company in his CEO role — at least compared to his prior level of involvement,” Business Insider reported.
Garrett Nelson, senior equity analyst at CFRA Research, told the publication that shareholders have “legitimate concerns about Elon Musk being spread too thin.”
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“It's become clear he's now spending more time on DOGE than anything else," he told Business Insider. But Nelson offered an easy fix to ease investors' angst: promoting somebody.
He recommended the electric car company "elevate a member of senior management to take on additional responsibilities to keep Tesla on track with its near and intermediate-term goals."
In addition to his role as head of DOGE, Musk also leads SpaceX, X, xAI, and Neuralink. He is also an avid gamer and father to more than 10 children, Business Insider noted. But it’s clear to Nelson that “he's now spending more time on DOGE than anything else.”
A recent poll also seems to support that view. Asked “Is Musk's White House focus hurting Tesla?" 60% replied "Yes - Tesla needs his focus,” while 25% said no, blaming the intense media attention he’s generated for “fueling the narrative.” The remaining 15% blamed non-Musk forces, according to Business Insider.