TeslaAn investor survey shows that 85% of people believe that Elon Musk's political behavior has a "negative" or "extremely negative" impact on the company.More than 8 in 10 respondents to a Morgan Stanley survey believe Tesla CEO Elon Musk's controversial political activities are hurting his business. A total of 85% of the 245 participants surveyed by the company believed that Musk's involvement in politics had a "negative" or "extremely negative" impact on the company's fundamentals. The survey also showed that most respondents expect Tesla's deliveries to decline this year.
Although the sample size is small, these results suggest growing dissatisfaction with the billionaire entrepreneur as he rises to prominence on the international and U.S. political stages. The findings also come at a critical juncture for Tesla stock, which has plummeted nearly 40% this year.
When asked about Musk's efforts to improve U.S. government efficiency and other political activities, 45% of respondents said these actions have had a "negative" impact on the company. Another 40% said these actions had an "extremely negative" impact.
On the other hand, 3% believed these actions were "good" for the company. Meanwhile, 12% considered these actions "irrelevant."
To be clear, Morgan Stanley analyst Adam Jonas reported that the respondents to his survey came from his email distribution list and should not be considered a random representative sample. He also noted that these respondents were not necessarily Tesla stock holders. The investigation began on Tuesday afternoon and took 17 hours to complete.
Jonas also asked respondents about their expectations for the company's performance. In another question, 59% said they expected Tesla to deliver fewer cars to customers in 2025 than the previous year. Additionally, 21% of all respondents expect deliveries to decline by more than 10%. This comes as some analysts have warned that recent reports of vandalism could scare away potential customers.
Only 19% of respondents said they expected deliveries to rise in 2025, with another 23% saying deliveries would be flat between the two years.
Musk's political profile has grown since he publicly endorsed President Donald Trump before last year's election and later served as head of the Department of Government Effectiveness (DOGE). The Tesla executive's efforts to cut federal spending and layoffs have drawn the ire of critics who say Musk's team has acted too hastily and haphazardly.
Musk admitted in an interview with Fox Business on Monday that his high-profile role in the Trump administration means he has a "difficulty" managing his businesses, which include X Corp and SpaceX. That day, Tesla's stock price plummeted more than 15%, recording its worst performance since 2020.
Despite the recent plunge, 45% of respondents said they expect Tesla shares to rise at least 11% by the end of the year. About 36% expect the company's stock price to drop another 11% or more by the end of the year, while 19% think the stock will fluctuate no more than 10% from around $220.
The president expressed his confidence in Musk on Tuesday after a New York Times report last week revealed criticism of Musk's team from members of Trump's cabinet. Trump took stock of five Tesla vehicles parked at the White House after he said on social media that he would buy one as a show of support.
Trump also said he would declare the violence at the Tesla dealership an act of domestic terrorism.