Tesla Share Price Drops to Lowest Since October
It shares have plunged 15%, reaching their lowest point since October. The stock is now down approximately 45% from its all-time high of $1.5 trillion in December. Investors are reacting to a combination of factors, including slowing sales, rising competition, and controversy surrounding Elon Musk’s political involvement.
Figure 1: Tesla stock’s performance on Monday. [Nasdaq]
Musk Faces Backlash Over Trump Administration Role
Elon Musk’s deepening ties with the Trump administration are causing concern among This investors and customers. Initially, investors welcomed his role as head of the Department of Government Efficiency (DOGE). However, his active involvement in policy decisions and recent public gestures have sparked widespread backlash.
At Trump’s inauguration in January, Musk made a gesture widely interpreted as a Nazi salute. This has further intensified protests against him and Tesla. Demonstrations have erupted across the United States and Europe, with former Tesla supporters smashing cars and urging others to sell their Tesla shares.
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Protests Turn Violent as Tesla Takedown Movement Grows
A movement called the “This Takedown” has gained traction. Protesters have stormed Tesla dealerships, set banners alight, and vandalised vehicles. In France, a dozen It were torched in what authorities are treating as an arson attack.
A protest in Lisbon, Portugal, turned violent over the weekend. Demonstrators smashed showroom windows, expressing anger over Musk’s support for far-right political figures in Europe.
Elon Musk on Verge of Tears Amid Tesla Crisis
The turmoil is taking a visible toll on Musk. In a Fox Business interview, he appeared emotional when asked about balancing his businesses and government responsibilities.
“With great difficulty… I’m just here, trying to make government more efficient, eliminate waste and fraud and so far we are making good progress,” Musk said.
Musk’s close ties to Trump have made Tesla a target for political criticism. The company’s stock has suffered as a result, losing nearly $US800 billion ($1.27 trillion) in market value.
Tesla Stock Faces More Pressure as Sales Decline
Tesla is also struggling with declining sales worldwide. Australian Tesla sales are significantly lower than last year. In China, sales plummeted by 49%, with Chinese automaker BYD surpassing Tesla in market share.
Analysts predict Tesla’s vehicle deliveries will remain flat or decline in 2025. The highly anticipated Cybertruck has failed to generate the expected profits, while competition in the electric vehicle (EV) market is intensifying.
Tesla Stock Price and Musk’s Fortune in Freefall
It’s stock price has almost halved this year. The sharp decline has hit Musk’s personal fortune, which has dropped by $141.50 billion. On Monday alone, Musk lost $20 billion.
UBS analyst Joseph Spak lowered his Tesla price target to $225 from $259, citing weak demand for the Model 3 and Model Y. “While the long-term story at Tesla has shifted to AI (robo-taxis and humanoid robots) and progress there continues, we believe these are longer dated opportunities that the premium multiple already (more than) considers,” Spak said.
Cyberattack Hits Musk’s Social Media Platform X
Musk’s troubles extend beyond it. His social media platform X experienced a major outage, which he blamed on a cyberattack.
“There was (still is) a massive cyberattack against 𝕏,” Musk posted on X. “We get attacked every day, but this was done with a lot of resources. Either a large, coordinated group and/or a country is involved. Tracing …”
Musk later claimed the attack originated from IP addresses in the Ukraine region.
Tesla Faces More Challenges with New Tariffs
This is also dealing with rising production costs. The Trump administration has imposed new 25% tariffs on steel and aluminium, both essential for car manufacturing.
Additionally, it relies heavily on Chinese suppliers for battery materials. A 2023 Nikkei study found that 40% of It’s battery materials come from China. With Trump escalating trade tensions, This faces higher costs and potential supply chain disruptions.
Analysts Lower Tesla Stock Estimates
Wall Street analysts are cutting their sales and profit estimates for it ahead of its late April earnings report.
EPS estimates for 2025 and 2026 have dropped by 3.4% and 2.6%, respectively, according to Yahoo Finance. Analysts also predict it’s first-quarter vehicle deliveries will decline by 5% year over year.
Tesla Bulls Remain Optimistic
Despite the ongoing crisis, some investors still believe in It’s future. Ark Investment founder Cathie Wood remains bullish on the company’s long-term potential.
“So I now think they’re going to start seeding every state [with robotaxis] and their Full Self-Driving. According to our calculations, their robotaxi will be safer in the fourth quarter than human drivers are,” Wood said.
Wedbush analyst Dan Ives also defended It. “The time has come to defend the stock,” Ives said.
It Share Price Outlook
It shares are currently trading at $222.15, down 15.43%. After-hours trading shows a further drop to $215.20.
With mounting controversies, declining sales, and investor concerns, This faces a challenging road ahead. Musk’s political involvement and the growing it Takedown movement could determine whether the company rebounds or continues its downward spiral.
