Wall Street has delivered a harsh verdict, sending Tesla’s stock plummeting by 7% on monday. This latest downturn adds another chapter to what some are calling the “Telenovela Boursière” of Elon Musk. The factors contributing to this decline include a class-action lawsuit, delays in the release of an affordable SUV, and concerns about the CEO’s focus.

Mileage Manipulation allegations

Tesla faces a proposed class-action lawsuit accusing the company of tampering with the mileage meters of its electric vehicles.The aim, allegedly, is to prematurely void warranties. If substantiated, this strategy would represent a departure from automotive innovation, resembling more of an accounting trick.As one might say, Elon Musk has always wanted to push the limits of technology, and now it seems he is attacking legal limits.

Model Y Delay: An Economic Setback

Adding to Tesla’s woes, Reuters reported a delay in the launch of the affordable Model Y, internally known as the E41. The launch is postponed by several months, potentially until 2026. This vehicle was intended to revitalize sales, particularly in markets where Tesla faces competition from Chinese manufacturers and consumer fatigue. The delay has unsettled investors who hoped for a low-cost option before summer. This model was to be the response to the drop in deliveries and the contraction of the margins, but it seems that even in Tesla, we cannot produce a SUV by singing Let it go.

CEO’s Divided Attention: Politics and Business

Elon Musk’s involvement in governmental affairs is raising concerns about his dedication to Tesla.His participation in the Department of Government Efficiency (DOGE) under the Trump administration has sparked questions about his ability to focus on his company. Critics suggest he has sacrificed Tesla’s reputation for ideological pursuits, leading to acts of vandalism at dealerships, a diminished brand image, and declining sales in California. the question arises: Is Elon Musk a to multitasking CEO?

His detractors accuse her of having sacrificed Tesla’s reputation on the altar of ideology.

Cybertruck Promotions and Margin Concerns

Tesla is offering promotions on its Cybertrucks, which appear easier to produce than sell. A massive recall in March to address issues with external panels further dampened public confidence. Simultaneously occurring, margins are shrinking. Analysts project a gross automotive margin of 11.83% (excluding regulatory credits), down from 13.6% in the previous quarter. tesla is prioritizing volume over profitability, offering incentives like free charging and autonomy options, even if it means sacrificing shareholder value.

Optimism Amidst the Turmoil

Despite these challenges, wedbush remains optimistic, describing Tesla as one of the most disruptive “technological companies in the world.” The firm believes that Musk could turn things around if he reduces his involvement in the Trump administration. Innovation, robotics, and autonomous driving are still on the horizon. However, the market demands tangible results, especially with delays in affordable SUVs and autonomous cars still in the “beta” phase.

Tesla’s stock, down 44% as the beginning of the year, continues its downward trajectory. With production delays, legal battles, controversial political choices, and a promotional strategy resembling a clearance sale, the company seems to be chasing a future it can no longer control.The situation raises a fundamental question: Is Tesla still a technological promise, or has it become a high-stakes stock market gamble?