Though Tesla's stock has soared 58% after Elon Musk's plans to leave the Department of Government Efficiency were announced, the stock may be overvalued in a big way, Forbes is reporting.
Experts are questioning whether Musk's renewed commitment to the brand will be a help or a hindrance to the company's share prices.
Tesla's brand reputation has taken some hits since 2021, and Musk's involvement as a special government employee for DOGE under the Trump administration is thought to have contributed to the fracturing of the company's popularity, as evidenced by the increase in public protests as well as some targeted vandalism against privately owned Teslas, Tesla dealerships, and charging stations.
Forbes cited Axios figures that showed Tesla fell from an eighth-place ranking on reputation within America's 100 most visible companies down to 95th in 2025, slotting in last or near-last in the rankings for "character," "ethics," and "citizenship."
Analysts have generally attributed these factors to Musk's public statements, leading Forbes' Peter Cohan to say that "it is unclear whether Musk is more part of the problem than part of the solution for Tesla investors."
Recent reports have also shown that plummeting Cybertruck trade-in values are decreasing the overall value of Tesla inventory. In addition, Forbes reports that Tesla sales in China and Europe have been on the decline as EV competitors take more of the market share, with tariff trade wars also playing a role in hurting the U.S. automaker's export prospects.
Forbes is predicting that as a result of these factors, Tesla stock may be overvalued by about 23%, trading 29% below its peak in December 2024 and reaching an all-time low in April 2025, just before Musk announced his plans to leave DOGE. Since the announcement, stock prices have risen by 58%. The temporary reprieve on 50% tariffs on European Union exports to the U.S. may also be a contributing factor.
Then on June 5, after Forbes published its report, Tesla stocks took another slide and later began to rebound amid Musk's public rift with President Trump, suggesting Tesla could continue to have a bumpy road ahead.
Despite Tesla's volatile stock prices and decreasing sales, EV sales overall have been on the rise as consumers become more aware of and interested in helping the environment and saving money on gas. And while EVs typically run a bit more expensive than gas cars upfront, those savings per year on fuel and maintenance — EVs have fewer parts and do not require oil changes — add up fast.
When EV owners install solar panels, it can dramatically increase the cost savings of EV vehicle ownership, further reducing energy consumption and costs. EnergySage provides a free service that allows people who are interested in installing solar panels to easily compare vetted installer quotes and save up to $10,000.
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Solar panels may not be for everyone due to the large upfront costs associated with installation, though, so there are also programs like Palmetto's LightReach for solar panel leasing, which installs solar for no money down to let users secure low energy rates without the cost of buying.
Whether the overall trend toward EV ownership will help stabilize Tesla's stock price and sales is yet to be determined. The Forbes article states that "It is unclear whether Musk is more part of the problem than part of the solution for Tesla investors."
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