Tesla stock remains under pressure as Musk’s political exposure weighs on sentiment

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Musk-related risks keep Tesla under pressure

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Mykhailo Ihnatenko

06.11.2026

Tesla stock remains under pressure as Musk’s political exposure weighs on sentiment — Tesla attempts to rebound from $338

Tesla stock suffered a sharp selloff following the U.S. midterm elections. Elon Musk’s political activity is becoming an increasingly important risk factor, while attempts at recovery remain fragile.

TSLA price prediction

24H 0.49%

$359.96

48H -0.06%

$358

7D 0.22%

$359

1M -2.13%

$350.58

3M -8.46%

$327.91

6M -20.32%

$285.42

12M -26.03%

$264.99

Detailed

Current price: $358.22 14.53 4.23%

Closed 11/06

Daily range 355.97

363.78

Weekly range 338.42

414.17

Political risks for Musk have become higher after the Democratic Party won the elections. As reported by Reuters, an investigation into his business is being prepared by the lawmakers and includes such aspects as SpaceX contracts with the government, Musk’s activities in DOGE, and possible conflicts of interests.

Regulatory pressure on the AI sector and data-center development is adding another layer of uncertainty. The political shift could make large infrastructure projects more difficult and complicate any potential combination of Tesla and SpaceX. Against this backdrop, Tesla stock fell 10.77% on November 5.

The timing is particularly sensitive because Tesla is cutting Cybertruck production while shifting more of its focus toward robotics and AI. That strategic pivot increases the company’s exposure to a sector that could face tighter regulatory scrutiny under the new political environment.

Tesla stock faces $350 resistance after testing $338.15

Tesla fully completed the scenario outlined previously. The price reached the $371.50 target before accelerating lower to $338.15.

In premarket trading on November 6, the stock recovered partially to around $349, making $350 the key resistance level. If buyers can break above it and keep the price there, the probability of a further move toward $357.50 would rise sharply.

After such a steep decline, TSLA needs several days of stabilization before a more sustainable rebound can develop.

Otherwise, the stock could fall back toward the nearest support at $337.50.

Musk's political exposure adds pressure beyond Tesla's fundamentals

Elon Musk’s reputation and political activity are playing an increasingly important role in the valuation of companies associated with him. Potential investigations and regulatory restrictions could add pressure to Tesla stock even if the company reports positive financial results.

In this environment, political exposure has become a standalone risk factor that investors must weigh alongside Tesla’s underlying business fundamentals.

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