Ark founder and longtime Tesla supporter Katie Wood has voiced her support for the company's CEO Ilon Musk after he announced the formation of his own political party. Musk has decided to personally address Tesla's falling sales in the US and Europe: and if he focuses on something, he gets results, Wood said. Morgan Stanley analyst is not so optimistic: he believes that Musk's political activism will continue to weigh on Tesla's quotes.

Details

Katie Wood, in an interview with Bloomberg, publicly supported Ilon Musk despite the slump in Tesla's stock following his announcement to form a new political party. She drew attention to the billionaire's "renewed operational focus": as reported by Bloomberg sources, Musk has decided 

"One of the statements that Ilon has made recently was that he would be monitoring sales in the U.S. and Europe. When he focuses on something, he usually gets things done. I think he's a lot less distracted now than, say, when he was in the White House 24/7," Wood said." said Wood.

At the same time, she acknowledged the "controversy" surrounding Musk's figure. "Since we first bought [Tesla] shares, we have constantly encountered some form of controversy about Ilon Musk in one form or another. But we trust the board and its instincts and stay out of politics," the investor said.

Katie Wood is a longtime supporter of Tesla: the company's securities have remained one of the largest holdings in several of her Ark funds since 2014. In March, she told Bloomberg that the company's stock price would reach $2600 within five years - nearly nine times its current price - thanks in large part to robotaxis. She believes this project will account for up to 90% of Tesla's value in the long run. Wood also invests in other private companies of Ilon Musk, including SpaceX, Neuralink and xAI, Bloomberg noted.

What Morgan Stanley predicts

Tesla's threat from Musk's political ambitions caused concern for Morgan Stanley analyst Morgan Stanley's Adam Jonas: he predicted the company's stock would continue to fall, reports CNBC.

"While the situation remains volatile, we believe investors should be prepared for resources (financial, time, management) to increasingly shift to Mr. Musk's political priorities, which could increase pressure on Tesla stock in the short term," Jonas said.

Despite this, a Morgan Stanley analyst maintained a buy recommendation on Tesla stock with a target price of $410 - up 38% from the closing price on Tuesday, July 8.

What others think

Even longtime Tesla supporter Wedbush analyst Dan Ives, a longtime Wedbush analyst, has criticized Ilon Musk's political activism. He made several recommendations to Tesla's board of directors on social network X, including setting a clear amount of time Musk is required to devote to Tesla. The Tesla CEO was brief in his response, "Shut up, Dan," wrote Musk under Ives' post.

Not all analysts blame Musk's ambitions for Tesla's problems, noted Yahoo Finance. For example, Cox director of industry analytics Stephanie Valdes Streeti told the publication that Tesla's sales decline is due to increased competition, an outdated lineup and signs of brand fatigue in the domestic market. An update to the popular Model Y hasn't helped support sales, she said.

"Tesla's budget electric car has yet to appear, while consumers already have a choice of more than 70 electric models - and many of them are increasingly attractive and competitively priced," emphasized Valdes Streeti.

What about the stock

In trading on July 8, Tesla rose by almost 4% to $304 at the moment, but ended the day up only 1.3%.

The company's market value has fallen by more than 26% since the start of 2025, one of the worst performances among the Magnificent Seven companies. But more than 40% of analysts tracking the securities, advise investors to buy them. Another third are neutral, while the rest recommend selling. Wall Street's average target price for Tesla securities is $313 - nearly 7% higher than the last close.

This article was AI-translated and verified by a human editor

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