Tesla’s stock dropped 36% in Q1 2025, marking its worst performance since late 2022. This decline wiped out over US$460 billion in market capitalization.

The drop coincided with CEO Elon Musk’s involvement in the second Trump administration, where he leads the Department of Government Efficiency (DOGE). His political role has sparked protests and boycotts against Tesla.

Tesla also faces challenges with declining vehicle sales and skepticism around Musk’s promise to launch a driverless ride-hailing service by June in Austin, Texas.

Analysts doubt the company’s ability to meet deadlines for Full Self-Driving software and hardware upgrades.

Despite the downturn, Musk remains optimistic, calling the situation a “buying opportunity” for investors.

Recent Tesla developments