Tesla Retail Sentiment Hits 6-Month Low As Epstein Files Release Puts Elon Musk Back In The Spotlight

• DOJ files show past email exchanges between Elon Musk and Jeffrey Epstein, with no allegations of wrongdoing or evidence of a visit to Epstein’s island.
• Retail chatter around Tesla turned sharply negative, centered on reputational concerns.
• Musk responded on X, denying illegal activity and backing full transparency and prosecutions despite expecting personal attacks.

Retail sentiment toward Tesla fell to a six-month low late Sunday as chatter around the stock turned bearish following the release of millions of documents tied to the late sex offender Jeffrey Epstein.

On Stocktwits, Tesla-related message volume surged over the weekend, with a wave of bearish posts focusing on reputational concerns linked to renewed scrutiny of CEO Elon Musk. 

Tesla’s stock rose 3.3% on Friday and edged 0.2% lower in after-hours trading. 

What The Epstein Files Say About Musk

The renewed attention follows a large disclosure by the US Department of Justice on Friday, which released roughly three million pages of Epstein-related material, including emails, images and investigative records, under a transparency law mandated last year.

Among the documents are email exchanges between Epstein and Musk dating back to 2012 and 2013. In the correspondence, Musk discussed potential travel plans and social activities, including asking Epstein what day or night would be “the wildest party” on his private island and later mentioning a desire to “let loose” during the holiday season, according to a report by BBC.

The emails also show Epstein asking Musk logistical questions about helicopter transport to the island, to which Musk replied that it would only involve himself and his then-wife. Subsequent messages reference possible visits and scheduling discussions, though there is no evidence in the files that Musk ever traveled to Epstein’s island.

The documents do not allege criminal conduct by Musk, and being named or referenced in the files is not an indication of wrongdoing.

Retail Commentary Turns Harsh

On Stocktwits, retail sentiment toward Tesla fell to 14/100, marking an 'extremely bearish' reading amid 'high' message volume and its lowest level since February 2025, when sentiment last touched 7/100.

One Stocktwits user said, “$TSLA Regardless of your Bull or Bear sentiment, Ellon’s brand got damaged with all this Eipsten case. 300s for sure this coming week.”

Another user said they did not hold a position in Tesla but warned that the Epstein files could “hurt TSLA bad very bad,” while a separate trader wrote that the stock was falling due to Elon Musk’s name appearing in the Epstein files.

Some traders also expressed bearish price expectations, with one saying the stock could trade below $400 soon.

Another user said, “$TSLA = no one wants to drive a pedomobile or have a pedo robot in their homes. Bye bye.”

One user argued that Elon Musk’s political involvement has damaged Tesla’s brand and shareholder value, saying his actions were hurting U.S. sales prospects and leaving the company vulnerable to rising competition from BYD.

Musk Denies Wrongdoing

Musk addressed the matter on X, saying he was “well aware” that his past email correspondence with Epstein could be misinterpreted or used to smear him.

He said he had never attended Epstein’s parties, flown on his private aircraft, visited his island or done anything illegal. Musk added that he supported the full release of Epstein-related files and the prosecution of individuals who committed crimes, even though he expected to face personal attacks as a result.

Earnings And xAI Investment Add To Pressure

Sentiment was also driven by Tesla’s recent earnings and capital allocation decisions. The company reported fourth quarter earnings per share of $0.50, below the $0.73 recorded a year earlier, though ahead of consensus estimates, while revenue of $24.9 billion modestly exceeded expectations. 

Tesla also disclosed a $2 billion investment in xAI, CEO Elon Musk’s AI venture, a move that drew scrutiny amid reports of a potential xAI–SpaceX merger and appeared to weigh further on sentiment toward the stock.

Tesla’s stock has risen 8% over the past 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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