Tesla’s stock remains in the red for five consecutive days, despite a slight increase on one day, as investors lose faith in CEO Elon Musk and the company’s prospects. The decline is attributed to Musk’s focus on other projects, including his work with the Department of Government Efficiency, which has led to a decrease in Tesla sales across Europe.
Recent data from Hazletree shows that institutional investors are taking steps to protect themselves from potential losses, with short-seller crowdedness rising for Tesla. The firm’s managing director notes that Tesla is suffering a “metaphorical ‘short-circuit'” due to Musk’s personal brand turbulence and ongoing political turmoil.
Tesla’s stock has fallen 30% over the past month, hitting its lowest point in years, and short sellers are taking notice. While current levels of short interest are lower than eight months ago, investor confidence is not rising despite a slight increase in share prices.
Industry experts, including David Materazzi, CEO of Galileo FX, believe that Tesla’s decline is more severe than initially thought, with nearly a quarter of its sales lost to Europe. They warn that investors may eventually write off Musk’s controversies as mere distractions from the company’s underlying performance.
With short interest in TSLA rising and investor confidence remaining low, it remains uncertain whether Tesla can bounce back from its beaten-down levels.
Source: https://www.thestreet.com/technology/investors-may-be-losing-faith-in-both-elon-musk-and-tesla-stock