Kevin O’Leary, famously known as “Mr. Wonderful,” has strongly criticized Governor Tim Walz (D-Minn) for his recent comments about Tesla Inc.’s declining stock. The criticism came after Governor Walz made a joke about getting a “boost” from seeing Tesla’s stock down, which seemed to be a dig at Elon Musk’s ties with the Donald Trump administration.
The Incident Unfolds
During an event, Walz joked about checking Tesla’s stock and feeling uplifted by its decline. However, this remark did not sit well with O’Leary, who pointed out the inconsistency in Walz’s stance given that the Minnesota State Board of Investments holds a significant number of Tesla shares in its retirement fund. According to a 2024 report, the state held 1.6 million shares of Tesla, indicating a substantial investment in the company.
O’Leary’s Response
O’Leary slammed Walz in a CNN segment, stating, “That poor guy didn’t check his portfolio and his own pension plan for the state.” He further criticized Walz, saying, “What’s the matter with that guy? He doesn’t check the well-being of his own constituents?” O’Leary’s strong response highlights the perceived hypocrisy in Walz’s criticism of Tesla given the state’s investment in the company.
Background on Tesla’s Stock Performance
Tesla’s stock has struggled in recent months, with a year-to-date decline of 37.71%. The company has faced challenges, including a $1.4 billion discrepancy in its capital expenditure report, which has contributed to a significant drop in its market valuation. Despite these challenges, some investors, like Cathie Wood, continue to show confidence in Tesla, with Ark Invest recently acquiring additional shares.
Analysts’ Views and Recommendations
Wedbush analyst Dan Ives has urged Elon Musk to reaffirm his commitment to the company and address concerns over vehicle demand and pricing. This comes as Tesla faces recalls, including one for over 46,000 Cybertrucks, and strives to restore investor confidence.
Price Action and Market Response
Tesla’s shares saw a slight surge during regular trading, closing at $236.26, but dipped 0.51% to $235.06 in after-hours trading. The company’s stock has been under pressure, reflecting broader market concerns about its future prospects and the challenges it faces.
Conclusion
The exchange between Kevin O’Leary and Governor Tim Walz over Tesla stock highlights the complexities and sensitivities surrounding investments and political commentary. As Tesla navigates its challenges, the company and its investors will be closely watching for any signs of recovery or further decline in the stock’s performance.