Tesla faced a rough start to 2025, with a 36% drop in its shares during the first quarter — the worst quarterly performance since 2022.
This decline led the company to lose over $460 billion in market value. Fierce competition from Chinese automakers, such as BYD, has pressured Tesla’s sales, directly contributing to the devaluation of its stock.
Despite the negative outlook, some analysts remain optimistic about the company’s future. A similar situation occurred last year, when shares fell 29% and then quickly rebounded, rising 63% following the election of Donald Trump.
Elon Musk, Tesla’s CEO, acknowledged the decline in his own portfolio, stating that his shares had lost nearly half their value.
One factor causing concern among investors is Musk’s political involvement. He is currently leading the Department of Government Efficiency (DOGE) at the White House, with the mission of reducing public spending. However, public sector job cuts and his time commitment to politics have sparked criticism, with shareholders demanding greater focus on Tesla’s operations, especially amid falling electric vehicle sales.
Source: Olhar Digital | Photo: Unsplash | This content was created with the help of AI and reviewed by the editorial team