Tesla Inc. Chief Executive Officer Elon Musk has moved to calm growing internal unease after the company’s stock plunged over 40% year-to-date, coupled with a rise in targeted attacks on its assets and mounting political backlash tied to Musk’s association with President Donald Trump.
In a surprise all-hands meeting held late Thursday at Tesla’s Gigafactory in Austin, Texas, Musk told employees to remain optimistic despite what he described as “rocky moments” for the company.
The meeting, which extended past 10 p.m. local time, was streamed live on Musk’s social media platform, X.
“There are times when there are rocky moments, a little bit of stormy weather,” Musk said. “But I’m here to tell you the future is bright and exciting.”
The meeting follows a string of high-profile arson and vandalism incidents targeting Tesla service centers and charging stations in key cities including Las Vegas, Kansas City, and Missouri.
The Federal Bureau of Investigation (FBI) has opened investigations into the incidents, which reportedly involve Molotov cocktails, anti-Musk graffiti, and significant property damage.
“I can’t walk past a TV without seeing a Tesla on fire,” Musk said. “I understand if you don’t want to buy our product, but you don’t have to burn it down.”
While Tesla’s stock decline mirrors typical seasonal softness in Q1 deliveries, this year’s downturn has been amplified by political unrest surrounding Musk’s visible role in the Trump administration.
Demonstrations have broken out at Tesla showrooms in Michigan and California with protestors citing concerns over Musk’s policy influence and increasing alignment with Republican leadership.
Analysts have raised concerns over the company’s public perception, with Wedbush Securities’ Dan Ives referring to the situation as a “tornado crisis moment” for Tesla.
Ives, a long-time supporter of the company, issued a rare critique earlier this week, urging Musk to refocus on Tesla’s core business and distance himself from political distractions.
Tesla’s U.S. sales have weakened significantly, with additional pressure from slumping shipments in China and Europe.
Production on the Model Y line was temporarily halted earlier this year in preparation for a refresh, while details remain scarce on the company’s planned launch of more affordable EVs in 2025.
Despite the challenging backdrop, Musk continued to project confidence. He reiterated Tesla’s commitment to developing its autonomous vehicle technology, referencing plans to scale production of the “Cybercab,” a futuristic, steering wheel-less electric vehicle.
The billionaire CEO also provided an updated timeline on the Optimus humanoid robot project, stating that external availability could begin in the second half of 2026 with the first batch reserved for Tesla employees.
He further hinted at possible expansion into electric vertical takeoff aircraft (eVTOL), stating, “Maybe we’ll do that.”
Efforts by top government officials to stabilize sentiment were also notable. U.S. Commerce Secretary Howard Lutnick appeared on national television urging investors to consider Tesla shares at their current discounted levels, calling them “too cheap to ignore.”
The comments have sparked debate over the potential violation of federal conflict of interest regulations.
Adding to the political noise, President Trump publicly pledged to buy a Tesla during a White House appearance, bringing several EVs to the South Lawn and further linking the brand to his administration.
Tesla shares closed down 3.8% on Thursday, extending the company’s year-to-date decline to 42%.
While some investors remain optimistic about the company’s long-term innovation pipeline, the near-term outlook is clouded by reputational challenges, political controversy and operational pressures.
With heightened security now in place at Tesla locations across the country and investigations ongoing, the company’s leadership is under increased scrutiny to restore stability and market confidence.
