📉 Tesla Shares Erase Trump Bump, Falling Over 40% in 2025
Tesla Inc. (NASDAQ: TSLA) has seen its stock price tumble by more than 40% since January 2025, wiping out the entire post-election “Trump bump” that briefly propelled shares up by over 90%. The electric vehicle giant is facing mounting challenges, including plunging sales, intensifying global competition, and CEO Elon Musk’s controversial political stances.
Tesla’s freefall has taken a massive toll on Musk’s net worth, which is heavily tied to his Tesla holdings. The billionaire has reportedly lost $121 billion in just three months, raising concerns about both his leadership and the company’s future.
🌍 Global Sales in Freefall, China and Europe Lead the Decline
Tesla’s global sales are cratering, with the company reporting its first-ever annual drop in worldwide deliveries last year. The situation has worsened in 2025, as Wall Street firms—including RBC, UBS, Goldman Sachs, Mizuho, and JPMorgan—have all lowered their delivery forecasts for the company.
In China, Tesla’s most critical international market, the company is losing ground to domestic EV giants. In February, Tesla’s shipments in China plunged by a staggering 49% year-over-year. The automaker’s struggles have been compounded by the rise of BYD, its top Chinese rival, which recently unveiled a game-changing charging system capable of adding 250 miles of range in just five minutes—twice as fast as Tesla’s current charging rate.
Meanwhile, in Europe, Tesla is also seeing sharp declines. Sales in Germany, once a stronghold for the company, plummeted by 76% last month. The backlash appears to be driven by Musk’s public support for a far-right nationalist party with alleged links to neo-Nazis, prompting consumer outrage.
⚡ Desperate Measures: Tesla Offers Free Trials to Salvage Market Share
In an attempt to reverse its shrinking market share, Tesla has launched a free month-long trial of its “Full Self-Driving” (FSD) software in China. The move signals growing desperation to regain customer interest, as rival automakers continue to roll out superior tech and more affordable models.
Despite these efforts, Tesla shares tumbled 5% in the US on Monday, followed by another 5% drop on Tuesday, as RBC slashed its price target due to mounting competition and declining sales.
📊 Used Tesla Prices Crash as Demand Wanes
The slump isn’t limited to new vehicle sales. Pre-owned Tesla prices are falling at more than double the rate of the overall used car market. According to CarGurus, used car prices have dropped 2.7% year-over-year, while used Teslas have fallen by a staggering 7.3%.
Even the Cybertruck, once hailed as a futuristic game-changer, has turned into a resale disaster. On the secondary market, used Cybertrucks are now selling for 58% less than they did a year ago, highlighting the fading demand for Tesla’s once-popular EVs.
🛑 Musk’s Controversies Add Fuel to the Fire
Tesla’s troubles are being exacerbated by Elon Musk’s political and personal controversies. The CEO’s increasing alignment with far-right movements, along with his frequent posts promoting conspiracy theories, has alienated large swaths of consumers and investors.
A recent CNN poll revealed that 53% of Americans now have a negative view of Musk, with 60% saying he lacks the judgment and experience needed to lead Tesla effectively.
The fallout is sparking an activist-led “Tesla Takedown” movement, where former Tesla owners are publicly selling their cars and encouraging others to dump their TSLA stock. Social media platforms are flooded with posts from disillusioned customers expressing regret over their Tesla purchases.
⚠️ Wall Street’s Patience Wearing Thin
Even Dan Ives, a historically bullish Tesla analyst from Wedbush, is sounding the alarm. While maintaining an “outperform” rating on the stock, Ives warned that investor patience is wearing thin, citing Musk’s distracting political antics and Tesla’s shrinking competitive edge.
JPMorgan analysts echoed this sentiment, calling Tesla’s rapid value loss “unprecedented in automotive history”.
