Apr. 3, 2025, 09:31 AM Tesla (TSLA) shares are down on Thursday as investors react to the EV company’s weak Q1 delivery numbers, concerns over U.S. tariffs, and the ongoing distractions of CEO Elon Musk’s temporary role at the Department of Government Efficiency (DOGE). Interestingly, Tesla shares briefly bounced on Wednesday after several media reports claimed President Trump had told cabinet members that Musk may be stepping down soon. However, Musk stated that his government role will end once his goals are met and called Politico’s report of an earlier departure as “fake news.” Don't Miss Our End of Quarter Offers: Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks. Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter. In addition, both he and the White House confirmed that his position is capped at 130 days, which means it ends on May 30. Still, Wall Street analysts continue to argue that Musk’s government involvement is hurting Tesla’s brand and distracting him from core business operations. Analysts have pointed out that negative sentiment around Musk’s political ties could be impacting the company’s public image and sales. It also does not help that the company’s Q1 deliveries report released on Wednesday showed the lowest quarterly delivery numbers since 2022. Tesla noted that the Model Y production lines were updated across all four factories, which caused several weeks of downtime. However, the ramp-up of the new Model Y is said to be progressing well. Despite that, some investors believe that customer backlash against Musk’s political role also played a part in the weaker demand for Tesla vehicles in the quarter. Is Tesla a Buy, Sell, or Hold? Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 16 Buys, 11 Holds, and 12 Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $313.45 per share implies 18.7% upside potential.