Tesla's shares fell more than 3.5 percent in early trading on Monday following the Department of Justice's release of files detailing communications between Elon Musk and Jeffrey Epstein. The documents contradict Musk's earlier denials of interest in visiting Epstein's island. Despite some sales upticks in Europe, the company's stock has faced pressure amid ongoing controversies.
The Department of Justice last week released millions of files from its investigation into Jeffrey Epstein, the deceased sex offender convicted in 2008 of crimes against underage girls. Among the disclosures were emails between Epstein and Tesla CEO Elon Musk, exchanged years after the conviction. In one exchange, Musk inquired about a "good time to visit" Epstein's Caribbean island and whether he had "any parties planned," directly contradicting Musk's previous statements that he had "declined" an invitation to the island.
Trading resumed on Monday with Tesla's shares plummeting over 3.5 percent in early sessions, dropping from highs of about $450 last week to around $426. This reaction underscores investor concerns over Musk's associations, even as Tesla's shares have risen 38 percent over the last six months and 11 percent over the past year, despite a calamitous 2024 where the company's European market share shrank massively due to Musk's political stances.
Musk has attempted to downplay the revelations, calling the documents "fake news" and claiming the emails are being "misunderstood." However, his estranged daughter, Vivian Wilson, corroborated their authenticity in a Threads post: "we were in St Barth’s at the time specified in the emails, and therefore I believe they are authentic."
On the business front, Tesla showed mixed signals in Europe. New registrations increased 70 percent in Spain and 75 percent in Italy compared to the same period last year. Yet, official data for January indicated declines elsewhere: registrations fell 88 percent to 83 vehicles in Norway and 42 percent to 661 in France, while rising 26 percent to 512 in Sweden and 3 percent to 458 in Denmark. Overall, Tesla's European market shrank 27 percent in 2024.
During last week's fourth-quarter earnings call, Musk announced plans to discontinue the Model S and X, converting the Fremont, California, plant into a robot factory, signaling a pivot toward AI and robotics amid competitive pressures, including from Chinese rivals.
