Tesla’s once-unassailable position in the market is under siege. The electric vehicle giant, once synonymous with seeming innovation and soaring stock prices, finds itself navigating a sea of uncertainty—this time, thanks to its CEO’s controversial actions.

Investors are reeling, left to grapple with a stock that could either triple or plummet, according to analysts at Morgan Stanley. The sharp decline has even resolved portfolio balancing issues for some, as easily as a simple or single-session drop.

Here are some actual numbers. TSLA is up 625% since five years ago. But the fact that it’s dropped 34% YTD erases all the gains since October . . . and if you bought in exactly three years ago, you’re down 27%. That’s a volatile stock.

Right now, that volatility points down. Elon Musk’s recent endeavors, particularly in American and foreign politics, have ignited a firestorm of criticism. His outspoken support for certain political parties and movements has alienated a significant portion of the market, leading to declining sales, protests, and even acts of vandalism.

The company’s stock, once a symbol of unbridled growth, has seen a substantial decline. The fervor that once surrounded Tesla, fueled by Musk’s bold pronouncements, has given way to apprehension and sometimes disgust. Online forums, once filled with unwavering support, now resemble group therapy sessions, where investors attempt to rationalize their continued faith in the company.

Concerns about Musk’s behavior have led some investors to divest their holdings. One investor relayed, “They really didn’t like what happened in terms of the salute. I’m hearing this over and over again from wealthy clients, and clients in Europe—that Elon is supporting the AfD.” 

(“Alternative for Germany” is one of several virulently hateful, far-right European organizations Elon goes out of his way to support publicly.)

This isn’t the first time Tesla has faced adversity. Past stock declines, triggered by Musk’s acquisition and destruction of Twitter and concerns about slowing growth, were eventually mitigated by more of his grandiose promises and strategic adjustments. 

However, the current situation feels different. The confluence of controversies, coupled with a growing sense of “Tesla shame” among owners, presents a formidable challenge.

The company, which once deftly navigated industry-wide challenges, now finds itself grappling with a crisis of its own making. Tesla owners are regularly expressing reluctance to be seen in their vehicles, a stark contrast to the brand’s previous allure.

Analysts are struggling to predict the stock’s trajectory. Morgan Stanley, for example, has provided a wide range of potential outcomes, highlighting the unprecedented uncertainty surrounding the company. Some investors are adopting a long-term perspective, arguing that Tesla’s valuation remains attractive when viewed through a longer lens.

However, in the short term, the stock’s movement is influenced by a multitude of negative factors, from commercial and macroeconomic forces to geopolitical and technological developments. Even Musk’s most ardent supporters are hedging their bets. 

While some maintain their faith in Musk, many also express a desire for the CEO to adopt a less controversial public persona. “I don’t think it’s a great thing to alienate half the population,” one remarks—an estimate that may well be seen as conservative in the future.

Tesla finds itself at a crossroads, the company’s ability to navigate this turbulent period determining its future trajectory. But with a CEO damaging the administrative state and giving passive support to fascists here and abroad, it’s possible the company’s worst enemy could be Musk himself. The call is coming from inside the house.