Tesla’s stock is driven by sentiment, which has soured greatly. Plus, Musk has now alienated Republicans and Democrats alike.

Tesla (NASDAQ: TSLA) massively defied expectations in the past few weeks. The stock surged despite a Q1 earnings report that was dismal, and continued gaining as Musk made promises about robotaxis and Optimus robots.

Mr. Musk may also lose sway over federal regulators who could make or break his plans to deploy driverless taxis, which he has described as the future of the company. Tesla is already suffering steep declines in sales and profit.