Tesla’s stock fell 3% on Mar. 3, following a 28% drop in February, the company’s worst monthly loss since December 2022, bringing its market cap to about US$915 billion.

The decline comes after CEO Elon Musk mentioned a potential “1000% gain for Tesla in 5 years” if execution is “outstanding.”

Tesla has struggled with an 8% drop in automotive revenue and a 23% decline in operating income for Q4 2024. Falling average selling prices and new tariffs on materials from Canada and Mexico are also expected to impact the company’s supply chain.

Musk’s geopolitical controversies and role as head of the Department of Government Efficiency (DOGE) have fueled criticism.

In Europe, Tesla registrations have plummeted, with Germany seeing a 60% drop in January.

Meanwhile, competition in EVs and self-driving is rising. Chinese automakers are offering advanced tech at lower prices, and Waymo is expanding robotaxi services in multiple US cities.

Tesla plans to launch its unsupervised full self-driving service in Austin by June 2025, with more cities to follow.

Recent Tesla developments