Tesla’s Wall Street woes deepened on Monday as the electric vehicle (EV) giant’s stock took a staggering 15% plunge—the worst single-day drop since September 2020. The dramatic sell-off adds to Tesla’s ongoing stock market misery, marking its seventh consecutive week of losses—the longest losing streak since the company’s 2010 Nasdaq debut.
Since peaking at R9,100 per share on December 17, Tesla has seen its value more than halved, wiping out over R14.6 trillion in market capitalization. Monday’s drop ranks as the seventh worst in Tesla’s history, sending shockwaves through investors and tech enthusiasts alike.
Musk’s Dual Role Under Scrutiny
Tesla’s stock troubles come amid broader turbulence in the U.S. stock market, with the Nasdaq falling nearly 4%—its worst decline since 2022. However, much of Tesla’s decline appears tied to CEO Elon Musk’s increasing political involvement. Since accepting a senior role in the Trump administration, the billionaire entrepreneur has struggled to juggle his numerous ventures.
In an interview with Fox Business, Musk admitted managing his businesses while fulfilling government duties was proving “extremely difficult.” Meanwhile, his social media platform, X (formerly Twitter), suffered multiple outages on Monday, and SpaceX is investigating two explosive test flight failures of its Starship rocket.
Adding to investor uncertainty, Musk stated he expected to remain part of Trump’s administration for at least another year. Later, he attempted to reassure stakeholders by posting on X, “It will be fine long-term,” regarding Tesla’s stock price nosedive.
The Tariff Trouble and Brand Backlash
The market downturn also coincided with growing uncertainty over Trump’s potential tariff policies. Canada and Mexico—key suppliers for Tesla and other automakers—could face increased trade restrictions, leading to higher manufacturing costs and potentially pricier EVs.
Beyond financial concerns, Tesla is grappling with a growing brand image problem. Musk’s outspoken political rhetoric, his role in Trump’s so-called Department of Government Efficiency, and controversial social media activity have alienated both customers and investors.
Protests have erupted at Tesla facilities across the U.S., with some activists and former Tesla fans accusing Musk of damaging the brand’s reputation. In Loveland, Colorado, Tesla showrooms and service centers have reportedly been targeted in multiple arson and vandalism attacks, the latest occurring on March 7, according to local police.
Ben Kallo, an analyst at Baird, warned on CNBC’s Squawk on the Street that rising hostility towards Musk could impact Tesla sales. “When people fear their car might get keyed or set on fire, even loyal Tesla supporters may think twice about buying one,” he said.
Tesla’s European Struggles and EV Market Trends
Tesla’s troubles aren’t confined to the U.S. Analysts at Bank of America reported that Tesla’s new vehicle sales in Europe plunged 50% in January compared to the previous year. The report suggests potential buyers are either distancing themselves from the brand due to Musk’s controversies or waiting for the refreshed Model Y, Tesla’s best-selling compact SUV.
Despite Tesla’s decline, the global EV market remains strong. In January, worldwide sales of battery electric and plug-in hybrid vehicles grew by 21% year-over-year, largely driven by demand in Europe. Notably, China’s Geely Geome outsold Tesla’s Model 3 sedan for the first time, a sign of intensifying competition in the EV sector.
What’s Next for Tesla?
Tesla remains a dominant force in the EV industry, but its latest struggles signal growing challenges. With political uncertainty, brand erosion, and increasing competition, the road ahead looks bumpy for Musk’s flagship company. While long-term prospects remain a subject of debate, one thing is clear—investors, customers, and analysts will be watching Tesla’s next moves very closely.
