Tesla investors expressed relief after CEO Elon Musk announced he would refocus on the electric car manufacturer. However, concerns persist regarding potential brand damage due to Musk’s recent political shifts. Musk’s involvement with right-wing politics in Europe and his advisory role to former President Trump have sparked protests and vandalism at Tesla showrooms. Prominent investor Ross Gerber emphasized the importance of Musk’s attention to Tesla, stating, “His time is very valuable, and I think Tesla needs his attention.” Despite this, there are worries that the Tesla brand may have been irreparably harmed. Shares of Tesla have dropped significantly since December, partly due to fears that brand damage could affect sales. Experts suggest that even if Musk dedicates more time to Tesla, reversing the negative perception might be challenging. Musk’s alignment with right-wing causes has alienated some consumers who previously supported Tesla’s climate-focused mission. While analysts suggest that increased adoption of electric vehicles in conservative states might offset declining sales in California and other markets, brand perception remains critical for Tesla’s growth phase. The company plans to launch an affordable model in early 2025 but warns of slower production ramps. Tesla will review its delivery forecast amid global trade policy shifts, expecting impacts on its energy storage business due to reliance on Chinese battery cells. Musk has advocated for lower tariffs but acknowledges potential bumps ahead. Tesla’s finance chief noted the impact of vandalism and hostility toward the brand in certain markets. Marketing experts believe that until the brand separates itself from political associations, Musk’s renewed focus may not significantly impact sales. — new from Reuters