Tesla's stock is experiencing a decline in after-hours trading, primarily due to concerns surrounding CEO Elon Musk's involvement with the Trump administration. Musk's new role in the "Department of Government Efficiency" has raised eyebrows, with a Quinnipiac poll indicating that 53% of U.S. voters disapprove of his prominent position. This political development has added to the uncertainty surrounding Tesla, as Musk's influence over federal agencies could impact regulatory processes, particularly in the autonomous vehicle sector.
Additionally, Tesla is facing scrutiny from federal reviews related to national security concerns involving Musk and his SpaceX business. These investigations have contributed to the negative sentiment, overshadowing Tesla's recent stock rally. The broader market downturn, with the Nasdaq dropping 3.6%, has also weighed on Tesla's stock, which is sensitive to interest rate changes and economic fluctuations.
Tesla (TSLA) shares fell 0.6% to $437.50 in after-hours trading, following an 8.28% drop to close at $440.13 on December 18, 2024.