Dan Ives, an analyst with Wedbush Securities, wrote that Musk's continued push into politics is "exactly the opposite direction" investors want to see.

Mr. Musk’s involvement in politics and his financial support for the president’s campaign was once seen by investors as a benefit to Tesla, fueling a steep rise in company shares after the election last year. That association has now turned into a liability. Tesla shares are down 40 percent from their peak in December.

Chinese electric vehicles are becoming far more attractive, rendering Tesla's cars less appealing, particularly in global markets.

Bloomberg journalists discuss today's biggest winners and losers in the stock market. Listen for analysis on the companies making news on Wall Street.