【AI vs Stock Commentators】Direxion Daily TSLA Bull/Bear 2X Shares: Is the Political Vortex Strangling the Tech Stock Myth?
On March 29, the "Tesla Takedown" protest wave swept across three continents, with nearly 200 Tesla showrooms in the U.S., Canada, and Europe being blockaded. Protesters directly targeted $Tesla(TSLA.US) CEO's central role in the Trump administration, dragging Tesla into an unprecedented brand trust crisis.
As the head of the Trump administration's "Department of Government Efficiency" (DOGE), Musk actively promoted cuts in federal spending and layoffs, but these radical measures sparked widespread concern and protests. Reports indicate that protesters are urging the public to sell Tesla cars and stocks to economically boycott Musk.
This turmoil has dealt a substantial financial blow to Tesla. As of the close on March 29, Tesla's stock price was $263.55, down 45% since December last year, with its market cap evaporating over $500 billion—erasing nearly all the gains from Tesla's stock doubling after Trump's election victory.
Operational alarms are also ringing, with analysts downgrading Tesla's Q1 delivery estimates from 420,000 to 360,000–370,000 vehicles, shifting from growth expectations to contraction. Musk himself admitted in a Fox News interview: "For me, entering government is actually detrimental. My company is suffering because of my role in the administration."
Wedbush analyst Dan Ives warned that, regardless of political stance, Tesla becoming a political symbol is a disaster for the company, and Musk's political pivot has damaged the Tesla brand.
Given Tesla's current brand threats and short-term stock volatility, we invited stock commentator Chen Da from U.S. Stock Investment to debate with DeepSeek.
Chen Da, U.S. Stock Investment: "For a long time, Tesla has been a company that can't be valued using traditional methods. Its assets are somewhat like Bitcoin or other digital currencies—so-called 'story stocks' or 'faith-based stocks.' Most of Tesla's market cap is based on future assets that currently lack substantial grounding, such as humanoid robots. So buying Tesla is essentially a leap of faith. Overthinking it or crunching numbers on a calculator will never get you in the game.
For such a company, too much market value is tied to Musk himself. Therefore, Musk spending excessive energy on politics and the hostility his political stance attracts are undoubtedly huge short-term negatives for Tesla—as reflected in the recent stock price. If you exclude Musk's leadership value, no one knows how much of Tesla's valuation would remain using traditional methods.
On the other hand, Musk's current honeymoon with the ruling Republican Party could be a major boost for certain businesses, like autonomous taxis. Cathie Wood believes autonomous driving will account for 90% of Tesla's future value. The autonomous taxi industry, whether in China or the U.S., is highly public-infrastructure-oriented and requires strong government-business collaboration to develop. In the long run, this could be a positive for Tesla.
Blessing or curse? I think it's a mixed bag." [1]
Are investors bullish ($XL2CSOPTSLA(07766.HK) ) or bearish ($XI2CSOPTSLA(07366.HK) )? Share your views in the comments!
Source: Wall Street News
[1] Due to space and time constraints, only partial views collected as of March 28, 2025. Stock commentator views are provided by relevant individuals and are for general reference or illustrative purposes only. The views do not constitute investment or any other form of advice. Investing involves risks. For investment advice, please consult your professional advisor.
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