Tesla Stock Plunges as Musk’s Politics Alienate Buyers

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Tesla Stock Plunges as Musk’s Politics Alienate Buyers \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ Tesla’s stock plummeted 14% on Monday, dropping to its lowest level since October, as investor confidence continues to erode. Sales have fallen sharply in key markets, including China, Europe, and California, amid backlash over Elon Musk’s support for Donald Trump and far-right politicians. Tesla’s declining popularity among environmentally conscious buyers has contributed to its first annual global sales drop. Meanwhile, Musk’s other ventures, X and SpaceX, have also faced setbacks.

Tesla Stock Crash Quick Looks

Tesla Shares Down 40%: Stock dropped 14% on Monday, trading at $226.11 per share.
Global Sales Decline: Tesla sales plummet in China (50%), Europe (45%), and California.
Political Fallout: Musk’s $270 million donation to Trump and far-right endorsements alienate buyers.
Public Backlash: Protests at Tesla showrooms, vehicle vandalism, and declining brand reputation.
Other Musk Ventures in Trouble: X crashed multiple times, and a SpaceX rocket exploded over Florida.

Deep Look

Tesla, once the dominant force in the electric vehicle (EV) market, is now facing a massive stock collapse and a global sales downturn. On Monday, the company’s stock plummeted 14%, closing at $226.11 per share, its lowest point since October 2024.

This drop is part of a larger trend: since mid-December, Tesla’s stock has fallen nearly 40% from its peak of $479 per share. The sharp decline comes as Tesla struggles with falling sales in major markets, backlash from its traditional customer base, and CEO Elon Musk’s growing political entanglements.

Tesla’s troubles are not just financial—they are deeply tied to Musk’s high-profile support for Donald Trump and far-right politicians, which has alienated many Tesla customers, particularly environmentally conscious, liberal-leaning consumers who once viewed the brand as a symbol of progress and sustainability.

As Tesla grapples with its worst sales decline in years, analysts and investors are questioning whether Musk’s political moves are damaging the company beyond repair.

Musk’s Politics and the “Trump Bump” That Backfired

Tesla’s stock initially surged after Musk threw his support behind Donald Trump’s 2024 presidential campaign, with shares soaring to $479 in mid-December.

Musk donated $270 million to Trump’s campaign, appeared on stage with him at rallies, and cheered his victory over Kamala Harris in November. The stock rally—often called the “Trump bump”—was fueled by speculation that Trump’s policies would benefit Musk’s business ventures, including Tesla, SpaceX, and X (formerly Twitter).

However, the optimism quickly faded as Tesla’s core customers—liberal, upper-middle-class EV buyers—began abandoning the brand.

Musk became the public face of Trump’s “Department of Government Efficiency” (DOGE), a controversial effort aimed at drastic federal job cuts and slashing government spending.
Tesla customers—many of whom identify as progressive—reacted negatively, with protests at Tesla showrooms, vandalized vehicles, and social media campaigns urging buyers to boycott Tesla.
In California—Tesla’s largest U.S. market—sales began declining sharply as customers opted for rival EV brands like Rivian, Lucid, and Ford.

Global Sales Plunge as Customers Turn Away from Tesla

Tesla’s political fallout has had real-world consequences, particularly in its largest markets outside the U.S.

China: Sales Nearly Halved in February

China is Tesla’s second-largest market, accounting for a significant portion of its revenue. But recent sales data paint a grim picture:

In February 2025, Tesla’s China sales dropped by nearly 50% compared to February 2024.
Local Chinese EV manufacturers, including BYD, Nio, and XPeng, are dominating the market, with consumers moving away from Tesla amid quality concerns and Musk’s controversies.
Tesla’s Shanghai Gigafactory, once a crucial asset, is now facing lower production demand due to sluggish sales and increased competition.

Europe: Tesla Sales Drop 45% as Rivals Surge

Tesla’s European sales fell by 45% in January, according to research firm Jato Dynamics. While overall EV adoption in Europe continued to grow, Tesla saw a significant decline, particularly in Germany and France.

Germany: Tesla sales fell more than 60% in January, as local automakers Volkswagen, BMW, and Mercedes gained market share.
France: Sales plummeted 60% in January, followed by another 26% decline in February.
UK and other European nations: Similar sales drops were reported, as Tesla’s reputation in the region soured.

One of the biggest reasons for Tesla’s struggles in Europe? Musk’s vocal support for far-right politicians, including the pro-Russian, anti-Muslim German nationalist party AfD.

Many European Tesla buyers view Musk’s endorsements as extreme, making them reluctant to support Tesla financially.
Some European governments have also begun questioning Tesla’s subsidies, given Musk’s alignment with controversial political figures.

Backlash in the U.S.: Protests, Vandalism, and a Shifting Brand Image

While Tesla’s global sales slump is alarming, perhaps more troubling is the damage to its brand in the U.S.

Protests outside Tesla showrooms have become commonplace, with activists holding signs condemning Musk’s political affiliations.
Some Tesla owners have vandalized their own vehicles, covering them with stickers that read, “I bought it before Elon went nuts.”
Wealthy liberal customers—once Tesla’s strongest supporters—are now switching to rival EV brands.

In California, where Tesla previously dominated the EV market, competitors like Rivian, Lucid, and Hyundai have gained traction. Meanwhile, Ford’s electric F-150 Lightning and GM’s EV lineup have become popular choices for disaffected Tesla customers.

Musk’s Other Ventures Are Also in Trouble

Tesla isn’t the only Musk-led company facing setbacks—his other major businesses are also struggling:

X (formerly Twitter) crashed multiple times on Monday, causing frustration among users.
- Musk blamed the outages on a “massive cyberattack”, though critics argue X’s infrastructure has been weakened by mass layoffs and cost-cutting.
SpaceX suffered a massive failure last week when a rocket exploded over Florida, marking another setback for the company.
- This follows a December 2024 launch failure, in which a SpaceX rocket broke apart mid-air, raining fiery debris over the Turks and Caicos Islands.

With Tesla’s stock tumbling, X struggling, and SpaceX facing high-profile failures, Musk is dealing with a wave of negative headlines that could impact his overall business empire.

What’s Next for Tesla? Can It Recover?

Tesla now faces a critical test as it tries to reverse its stock decline and sales slump. The company’s biggest challenges moving forward include:

Rebuilding Trust With Consumers: Musk’s political alignment has alienated many Tesla buyers—will he adjust his public stance to win them back?
Addressing the Global Sales Decline: With sales dropping across key markets, Tesla must find a way to stay competitive against brands like BYD, Volkswagen, and Rivian.
Reassuring Investors: With Tesla’s stock down 40% in just a few months, analysts and shareholders are growing increasingly wary—will Tesla’s board take action?

Some analysts believe that Tesla’s long-term outlook remains strong, given its technological advancements and existing market presence. However, in the short term, the company is facing a crisis that could reshape its trajectory.

If Tesla fails to regain its footing, competitors could seize the opportunity—potentially marking the end of Tesla’s dominance in the EV market.

For now, the future remains uncertain—but one thing is clear: Elon Musk’s political gambles have put Tesla in its most vulnerable position in years.