Tesla (TSLA) stock climbed over 3% in pre-market trading on Tuesday, even as its owner, Elon Musk, faces renewed controversy involving his ex, Ashley St. Clair. As Tesla’s stock performance defies the headlines, investors weigh the impact of Musk’s never-ending controversies on the company’s long-term trajectory. Year-to-date, TSLA stock is down by over 35%.
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Musk’s Latest Controversy Unfolds
Musk is embroiled in a public dispute with influencer and author Ashley St. Clair over the paternity and financial support of her son. Notably, St. Clair publicly claimed that she and Musk have a son together in February 2025. St. Clair asserts that Musk is the father and has reduced child support payments by 60%, prompting her to sell her Tesla Model S to cover expenses. Meanwhile, she has filed for sole custody, alleging Musk’s limited involvement in the child’s life.
On the other hand, Musk has cast doubt on the child’s paternity but asserts that he has already provided $2.5 million in support and continues to pay $500,000 annually. He has also stated that he is open to taking a paternity test. However, St. Clair denied Musk’s assertion that he had agreed to take a paternity test.
This conflict has sparked widespread media attention, with leaked messages and public statements fueling the controversy.
Other Troubles Haunt Musk and TSLA Stock
Recently, Musk agreed that the backlash related to the Department of Government Efficiency (DOGE) is weighing on Tesla’s stock. During the latest town hall event in Wisconsin, he explained that people who oppose his DOGE plan are attempting to hurt him by selling off Tesla stock.
Additionally, Tesla’s car sales in France have dropped significantly, with a 37% decline in March. This further reflects a broader trend of decreasing sales across Europe for the EV giant. In Q1 2025, Tesla’s sales in France dropped by 41.1%, while the overall French market saw a smaller decline of 7.8%.
What Is the 12-Month Price Target for Tesla?
On Wall Street, analysts have maintained a neutral stance on Tesla stock. According to TipRanks, TSLA stock has received a Hold consensus rating, with 14 Buys, 11 Holds, and 12 Sells assigned in the last three months. The average price target for Tesla shares is $325.0, suggesting a potential upside of 25.4% from the current level.