Tesla Inc. (TSLA) shares fell 7% on Tuesday as investors expressed concerns over Elon Musk’s distracting moves. Oppenheimer analyst Colin Rusch called his $97.4 billion bid for OpenAI an “additional risk” for the company, as Tesla faces growing competition in the electric vehicle and autonomous driving markets.

Meanwhile, competition in China is intensifying: BYD has lowered the price of its entry-level model to below $10,000, while XPeng is offering 0% financing and free charging. In Europe, Tesla sales continue to decline—registrations in Germany dropped by 60% in January compared to the previous year, while sales in France fell by 63%.

Musk’s political activity and his role in Donald Trump’s administration pose additional risks. A study in the Netherlands found that a third of Tesla owners are considering selling their vehicles due to Musk’s political views. Analysts at Stifel note that Tesla’s brand favorability has dropped to one of its lowest levels in the company’s history.

Tesla ended 2024 with 1.78 million vehicle sales, down 1% from the previous year, marking the company’s first annual sales decline. Experts warn that Musk’s political reputation could continue to pressure Tesla’s sales in key markets.