Tesla Stock Plummets After Musk's Epstein Island Revelations

Shares drop over 3.5% as CEO's past ties to disgraced financier come to light.

Published on Feb. 2, 2026

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Tesla's stock price took a significant hit when trading resumed on Monday, dropping over 3.5% in early trading. The plunge came after the Department of Justice released documents showing back-and-forth communications between Tesla CEO Elon Musk and the late sex offender Jeffrey Epstein, contradicting Musk's previous claims that he had 'declined' Epstein's invitation to visit his infamous Caribbean island.

Why it matters

The revelations about Musk's relationship with Epstein could prove damaging for Tesla, as the CEO's actions and public persona have a major influence on the company's brand and public perception. The stock drop highlights how even Musk's most ardent supporters may be troubled by the new information about his ties to the disgraced financier.

The details

The DOJ document dump included emails showing Musk asking Epstein if there was a 'good time to visit' his island and inquiring about any 'parties planned' - contradicting Musk's previous claims. The stock plunge comes as Tesla faces growing competition in the EV market, particularly from Chinese automakers, and as Musk has announced plans to shut down the company's Fremont factory to focus on robot manufacturing.

  • The DOJ released the Epstein files last week.
  • Tesla's stock dropped over 3.5% when trading resumed on Monday, February 2, 2026.

The players

Elon Musk

The CEO of Tesla, who has faced scrutiny over his past ties to convicted sex offender Jeffrey Epstein.

Jeffrey Epstein

The late financier and convicted sex offender whose relationship with Musk has come under renewed focus.

Vivian Wilson

Musk's estranged daughter, who has confirmed the authenticity of the released Epstein documents.

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What they’re saying

“we were in St Barth's at the time specified in the emails, and therefore I believe they are authentic.”

— Vivian Wilson, Musk's estranged daughter (Threads)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.