Tesla (TSLA, Financial) shares took a hit Thursday, falling roughly 5.7%, as investors reacted to weak Q1 delivery numbers, rising tariff pressures, and continued questions about Elon Musk's temporary government role.

The stock had shown a small bounce on Wednesday after reports suggested Musk might be stepping away from the Department of Government Efficiency (DOGE) sooner than expected. But that idea didn't last long. Musk shut it down, calling the Politico report “fake news” and saying he's staying in the role until his goals are met.

Both Musk and the White House confirmed his role is capped at 130 days, putting his exit date at May 30.

Still, analysts say the distraction is real. Some argue Musk's government ties are hurting Tesla's brand and pulling focus away from the company's core operations. There's also growing concern that public sentiment around his political involvement may be affecting sales.

Adding to the pressure: Tesla just posted its weakest delivery quarter since 2022. The company said downtime from Model Y production line upgrades impacted output, though the updated Model Y is now ramping up. Even so, a few investors think the political backlash may have also played a role in the softer demand.