Tesla’s stock tumbled over 15% on Monday, marking its worst trading day since September 2020. This drop continues a seven-week losing streak since President Donald Trump took office. The company’s stock has lost over 50% of its value since reaching an all-time high of $479.86 on December 17 last year, closing at $222.15 on Monday. This decline has erased nearly $800 billion from Tesla’s market capitalization, stripping it of its trillion-dollar status last month.
Despite these setbacks, CEO Elon Musk remains unfazed. In response to the falling stock price, Musk posted on X that “it will be fine long-term” but provided no further details.
Investors and analysts have expressed concern over his divided focus, as he balances leadership roles at Tesla, SpaceX, Neuralink, the Boring Company, and X while also working with the Trump administration’s Department of Government Efficiency (DOGE). In a Fox Business interview on Monday, Musk admitted managing his businesses alongside his government role is “difficult” but expects to continue with DOGE for another year.
Investor confidence in Tesla appears to be waning. Multiple board members have sold off millions in Tesla shares, including CFO Vaibhav Taneja ($8 million), Chairperson Robyn Denholm ($115 million), and Musk’s brother Kimbal ($28 million). These moves raise concerns about the company’s future.
Tesla’s troubles extend beyond the stock market. Global sales have slumped, used Tesla prices are dropping, and profits plunged 70% in Q4 2024. Public sentiment has soured, with Musk facing protests outside Tesla showrooms and even boos for the Cybertruck at New Orleans’ Mardi Gras parade. Tesla’s association with Musk may now be hurting the company more than helping.
