Tesla is struggling in the stock market. While CEO Elon Musk’s attention is being taken up by the Department of Government Efficiency (DOGE), the Electric Vehicle (EV) maker is suffering catastrophic drops in share price.
Even with the recent theatrics at the White House with President Donald Trump endorsing Tesla cars, it seems that the company still has a long way to go to convince investors that Tesla stock is still good.
READ: Trump shows support to Tesla, calling attacks on the EV maker ‘domestic terrorism’ (March 12, 2025)
The EV maker’s shares sank over 15% on Monday, bringing its total 2025 losses to over 40%. Monday’s plunge erased about $127 billion from the carmaker’s market value. Tesla has now lost all its gains since November’s election of Donald Trump to the presidency.
Even the Chinese favor for Musk is diminishing, especially after his comments on X saying USAID had funded “bioweapon research, including COVID-19” went viral on Chinese social media earlier this year, according to the South China Morning Post, with some saying that Musk was reopening old wounds about COVID’s origins.
On Monday, the China Passenger Car Association, which tracks car sales in the world’s second-largest economy, commented on Musk’s politics and how they might affect sales.
“As a successful businessman, one should be embracing 100% of the market: Treat everyone nicely, and everyone will be nice in return,” CPCA Secretary General Cui Dongshu said during a Monday briefing, according to Bloomberg. That’s not possible in politics, he continued, as “half the voters will be friendly to you, and half of them won’t be.”
It is not just Tesla that has suffered with Musk’s new political role — recently, Musk’s aerospace venture, SpaceX had two disastrous rocket launches which could have led to a significant dent in investor confidence. However, as SpaceX is a privately held company, its failures do not directly affect Musk as Tesla’s stock do, which are directly linked to his net worth.
READ: Elon Musk’s SpaceX eyes $350 billion valuation, could surpass ByteDance (December 3, 2024)
Elon Musk and Tesla
Elon Musk is the CEO and founder of Tesla, a leading electric vehicle (EV) manufacturer. Under Musk’s leadership, Tesla revolutionized the auto industry by pushing the development and adoption of electric vehicles. The company’s mission is to accelerate the world’s transition to sustainable energy.
Tesla’s innovative cars, like the Model S, Model 3, and Model X, have set new standards for performance, safety, and autonomy. Tesla also ventures into energy storage and solar technology. Musk’s visionary approach to technology and his commitment to sustainability have made Tesla a key player in the future of transportation and clean energy.
When did Elon Musk buy Tesla?
In 2004, Musk led Tesla’s first major investment round, contributing $6.5 million and becoming the largest shareholder and chairman of the board.
After financial struggles and internal conflicts, Musk took over as CEO and product architect in 2008, effectively leading the company from that point forward.
So, while Musk didn’t “buy” Tesla outright, he invested early and took control by 2008, shaping it into the electric vehicle giant it is today.