In February 2025, Tesla’s stock fell 28%, marking its steepest decline since December 2022, largely due to political controversies surrounding CEO Elon Musk, who has taken on a government role under President Trump. Amid revenue drops and new tariffs affecting Tesla, negative reactions to Musk’s political gestures and social media posts have fueled anti-Tesla sentiment. This has manifested in vandalism, protests, and a movement called Tesla Takedown, which encourages divestment. Musk faces competition in self-driving technology, with rivals leading in commercial services. Despite challenges, he remains focused on future innovations like autonomous vehicles.
The head of the Department of Government Efficiency, Elon Musk, dons a “Tech Support” shirt while addressing a cabinet meeting with U.S. President Donald Trump at the White House in Washington, D.C., on February 26, 2025.
Jim Watson | Afp | Getty Images
Tesla’s shares opened March similarly to how it closed February: in a downturn.
During CEO Elon Musk’s initial full month alongside President Donald Trump, shares of his electric vehicle company plummeted by 28%, marking the largest decline since December 2022. On the first trading day of March, the stock dipped an additional 3%, reducing the company’s market capitalization to around $915 billion.
This Monday’s decline followed Musk’s weekend social media post, where he hinted at a “1000% gain for Tesla in 5 years” with “exceptional execution.” Furthermore, Morgan Stanley recently named Tesla as its top choice in the U.S. auto industry in a note dated March 2.
In Tesla’s fourth-quarter earnings report released in late January, the company revealed that automotive revenue dropped by 8% year-over-year and reported a 23% decrease in operating income. It attributed this downturn primarily to lower average selling prices across its Model 3, Model Y, Model S, and Model X lines.
Additioanlly, Tesla could face challenges from new tariffs implemented by Trump, which target goods and materials originating from Canada and Mexico, where some of its key suppliers operate.
However, the recent decline in stock price goes beyond just Tesla’s internal operations. Musk’s political endeavors, public work, and behaviors outside of Tesla appear to have a significant impact.
Currently, Musk leads the so-called Department of Government Efficiency, or DOGE, which is executing extensive cuts to the U.S. federal workforce, reducing federal spending, and aiming to eliminate regulations and streamline agencies, all while seeking new government contracts for his enterprises.
Aside from Tesla, Musk is also at the helm of SpaceX and the artificial intelligence startup xAI. Moreover, he holds ownership of the social media platform X.
Despite his advocacy for transparency in DOGE, Musk has kept many aspects of the group’s activities and strategies concealed from the public, all while gaining unprecedented access to federal government computer systems and sensitive information without the need for congressional approval.
On X, which boasts over 219.2 million followers on Musk’s profile, he has increasingly engaged in global affairs, notably endorsing Germany’s far-right anti-immigrant party AfD, and inciting accusations of election meddling from European leaders.
The Tesla CEO has also used X to disseminate inaccuracies regarding Ukrainian public perception of their President, Volodymyr Zelenskyy, and to unfoundedly accuse him of seeking a “forever war” with Russia—comments that align closely with Kremlin propaganda.
As a result, negative sentiment towards Musk and Tesla has surged across Europe and the U.S.
A recently viral advertisement in London rebranded a Tesla vehicle as the “Swasticar,” showcasing an image of Musk apparently making a gesture historically recognized as a Nazi salute. Additionally, multiple Tesla electric vehicles were allegedly set ablaze in a suspected arson incident in France on Sunday night.
New vehicle registrations for Tesla have dropped sharply in Europe, plummeting in France and Scandinavia during the initial months of 2025, and with a staggering near 60% decrease in Germany during January compared to the previous year.
Protesters hold signs during a demonstration at Tesla’s showroom in Seattle, Washington, U.S., on February 15, 2025.
David Ryder | Reuters
In the U.S., a wave of vandalism incidents commenced on January 29 at a Tesla facility in Loveland, Colorado. Over the recent weekend, nine individuals were reportedly arrested and subsequently released following a protest outside a Tesla dealership in New York.
Owners of Cybertrucks in the U.S. have reported experiencing negative backlash to their angular, steel Tesla trucks, ranging from rude gestures to more severe bullying or harassment.
Additionally, a movement dubbed the Tesla Takedown is urging individuals to divest from Tesla and to avoid purchasing vehicles or any other products or services from Musk’s enterprises.
This movement has garnered celebrity endorsements, with Japanese American actor and author George Takei, best known for portraying Hikaru Sulu on “Star Trek,” encouraging his followers on the social platform Bluesky to consider joining the Tesla Takedown initiative.
When Musk does redirect his focus back to Tesla, away from the White House, he emphasizes the company’s future in self-driving vehicles and humanoid robotics.
However, as it stands, Tesla is lagging behind some competitors in both China and the U.S. in the self-driving domain, as several companies already operate commercial robotaxi services while Tesla’s CyberCab remains in development.
Several Chinese manufacturers have also begun to provide partially automated driving systems that can compete with Tesla’s Autopilot and Full Self Driving Supervised options, often at no cost or at much lower prices than Tesla’s offerings.
During the recent earnings call, Musk informed investors that Tesla is anticipated to “launch unsupervised Full Self-Driving as a paid service” in Austin, Texas, by June, with driverless testing expected to expand to other U.S. cities shortly thereafter.
Alphabet-owned Waymo is far ahead, recently stating it is facilitating 200,000 trips weekly across San Francisco, Phoenix, and Los Angeles.
Tesla and Musk did not respond to requests for comment.
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