A devoted investor in Tesla has expressed hopes that Elon Musk’s role in reducing federal spending for Donald Trump’s administration is “short-lived” as he returns to managing his businesses. Christopher Tsai, the chief investment officer and president of Tsai Capital, which manages a portfolio of around $137m in Tesla stock, said the company’s performance may suffer if Musk continues to be involved in politics.
Tsai’s firm has seen significant gains since investing in Tesla in 2020, despite recent downturns. However, he believes that the market’s reaction to Musk’s involvement in government is real and that his role as a member of the “department of government efficiency” may not last long.
The investor’s comments come at a time when Tesla’s stock has fallen over 15% amid public protests against the company and vandalism reported at its dealerships. The firm’s largest holding, Tesla, has been criticized by experts for eliminating US humanitarian aid and development work, which could have life-threatening consequences.
Tsai’s family background also sets him apart from other investors who have weighed in on Musk and Tesla. His father, Gerald Tsai Jr, was a renowned financier and fund manager who helped build Citigroup, while his grandmother was the first woman to trade on the floor of the Shanghai Stock Exchange in 1939.
Despite being friends with Donald Trump Jr in his youth, Tsai has not had a meaningful conversation with any member of the president’s family since they went in different directions as Trump entered politics.
Source: https://www.theguardian.com/technology/2025/mar/15/christopher-tsai-elon-musk-tesla