A Mysterious Individual is Dumping Tesla Stock as the Company Suffers its Worst Week of the Year

Elon Musk probably thought he had it made after his buddy Donald Trump secured the presidency again. Visions of regulatory rollbacks, subsidized robotaxis, and a stock price that seemingly only goes up… what could go wrong? (Besides literally everything.) Well, turns out, a lot. Because Tesla is about to close out its worst week in a long time, and Elon's brother is dumping shares like he just got an inside tip that something is seriously off.

The numbers don’t lie… Tesla is getting hammered. Tesla shares have plummeted 7.5% this week, marking its ugliest performance since Trump won the election. Investors initially got a little too hyped over the idea of Musk having the president on speed dial (as if that means unlimited free market manipulation), but reality is setting in. And that reality has caused Tesla’s numbers to look grim across the board.

Sales in Germany collapsed 59% in January. Turns out, when you tell a country to stop worrying about their Nazi past and instead focus on nationalism, they don’t rush out to buy your electric cars. (Who could have seen that coming?) In France, sales plummeted 63%. Musk’s inflammatory social media rants against European leaders probably didn’t help. The UK saw a decline of 12%, while Musk was busy annoying Prime Minister Keir Starmer.

Over in Sweden, a Tesla mechanics’ strike has stretched into its second year, and sales have cratered 44%. Norway also saw a 38% drop, because apparently, even Scandinavians have their limits. (Turns out, “Elon being Elon” isn’t a strong enough brand strategy.) On top of that, deliveries in China fell 11.5% year over year, while BYD, Tesla’s biggest Chinese rival, just had its best week since 2020, thanks to some smart-driving tech updates. (Because they made a car that people actually want to buy.)

Adding more drama into the mix… Elon’s brother, Kimbal Musk, just offloaded 75,000 Tesla shares worth $27.6 million this week. It’s his first sale in three months, and, oh, what a time to cash out. (I’m sure it’s just a coincidence.) Almost like he sees the writing on the wall and would rather liquidate now than wait for the stock to really tank. Kimbal’s move is giving off serious "I don’t want to be holding this when it hits the fan" energy. (Wouldn’t be the first time an insider bailed before the music stopped.)

Elon might have assumed that his hot and heavy relationship with Trump would keep Tesla soaring above the clouds off of pure potential (because that always works out). Instead, it’s looking like his political baggage is starting to drag the company down. The theory was simple… Trump wins, Tesla moons. Investors hoped Musk would leverage his bromance with the White House to push through more EV-friendly policies and possibly secure some government perks. But so far, it’s not exactly playing out that way. (Turns out, being besties with a politician doesn’t automatically fix supply chain issues.) If anything, Musk’s increasing role as a political figure is turning off a chunk of the global market. (Shocking, I know.)

With Tesla already down 22% from its Dec. 17 high, analysts are torn. Some think this is just a rough patch and expect a turnaround soon. Others believe Tesla’s valuation is still wildly inflated and the worst may be yet to come. Mark Newton, head of technical strategy at Fundstrat, expects Tesla to bottom out in the next two to three weeks, with a sharp rebound possible afterward. The stock is now sitting below its 50-day moving average, signaling it could either stage a comeback… or fall even further (lots of help, I know). Wall Street remains divided. Half of analysts still rate Tesla as a buy. The other half are saying it’s time to hold or sell. The 12-month price target sits around $360, but given this week’s meltdown, that could be wishful thinking.

Tesla might bounce back, but right now, it’s a falling knife, and investors are figuring out whether to catch it or let it hit the floor. Kimbal Musk isn’t waiting around to find out, and neither are European consumers. If Elon was banking on political speculation alone to keep the stock flying, he might want to reconsider his strategy… because Tesla investors don’t seem too thrilled with his latest act. Maybe instead of tweeting through the pain, it’s time for Musk to focus on, you know, selling cars. (Just a thought.)

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Stock.News has positions in Tesla.