Tesla’s stock nosedived 14% on Monday, marking its worst single-day performance since September 2020. The sharp decline deepens the electric vehicle maker’s ongoing selloff, which has now extended into its seventh consecutive week—its longest losing streak since going public in 2010.
The stock has fallen every week since CEO Elon Musk assumed a key role in President Donald Trump’s second administration, overseeing the so-called Department of Government Efficiency. Since reaching a peak of $479.86 on December 17, Tesla shares have tumbled more than 50%, erasing over $800 billion in market value.
Tesla’s plunge contributed to a broader market downturn, with the Nasdaq sliding 4.4%—its steepest drop since 2022.
Tariff Uncertainty and Political Fallout Weigh on Tesla
Monday’s selloff was fueled by growing uncertainty surrounding Trump’s proposed tariff policies. Canada and Mexico are crucial markets for automotive suppliers, and fears of escalating trade tensions could disrupt production and drive up costs across the industry.
Beyond economic concerns, Tesla is also facing significant brand erosion, partly due to Musk’s increasingly polarizing political rhetoric. His close ties to the Trump administration—where he has been spearheading efforts to dramatically reduce the size of the federal government—have alienated a portion of Tesla’s customer base.
Musk’s social media activity has also drawn controversy, including public attacks on judges whose rulings he opposed and amplifying Russian propaganda about Ukrainian President Volodymyr Zelenskyy.
Backlash Grows: Protests, Vandalism, and Declining Sales
Tesla has become the target of protests and vandalism at its facilities across the U.S. In Loveland, Colorado, police confirmed multiple arson and vandalism incidents at a Tesla store and service center, the latest occurring on March 7.
Ben Kallo, an analyst at Baird, told CNBC’s Squawk on the Street that the rise in anti-Tesla sentiment could impact demand.
“When people worry that their car might be keyed or set on fire, even those who support Musk—or are indifferent to him—might reconsider buying a Tesla,” Kallo said.
Tesla’s struggles are becoming increasingly evident in sales figures. According to Bank of America, Tesla’s new vehicle sales in Europe dropped nearly 50% year-over-year in January, partly due to waning enthusiasm for the brand. Some prospective buyers are also holding off for the anticipated refresh of the Model Y.
Despite these setbacks, the Model Y remains the best-selling electric vehicle worldwide, followed by China’s Geely Geome, which surpassed the Tesla Model 3 sedan in January sales.
While Tesla’s numbers dipped, global electric vehicle sales—including fully electric and plug-in hybrid models—grew 21% year-over-year in January, driven primarily by demand in Europe.
With Tesla facing mounting economic and reputational challenges, all eyes will be on how Musk navigates this turbulent period for the company.
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