Baird financial services analyst Ben Kallo warned that Tesla CEO Elon Musk's political antics could be destroying the valuation of his company.
During a Monday morning report, CNBC host Carl Quintanilla offered investors bad news about Tesla's stock value.
"Tesla posing its 7th straight week of declines," he announced. "It's longest losing streak on record. Shares are now trading at their lowest level since the election. It is the worst performing stock in the S&P 500 so far this year."
Kallo explained why the company was struggling.
"It's going to continue to perpetuate the narrative of Musk destroying demand out there," he told Quintanilla.
"Yeah, well, is that just noise and just a narrative, or is that actually observably happening right here?" Quintanilla asked.
"Well, I think that, you know, when people's cars are in jeopardy of being keyed or, you know, set on fire out there, even people that support Musk or are indifferent to Musk might think twice about buying a Tesla," Kallo said. "But I do think that with the production ramp impacting deliveries, that's the bigger thing that will continue that narrative of demand at risk."
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"And so I think that we have at least a couple of months until we determine if he's attracting more buyers or losing more buyers, which I've seen the argument out there from my fellow analysts all over the place," he continued. "But there's a lot of uncertainty here."
"It's very plausible that demand is being destructed. I would say in Europe, even more plausible."
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