Tesla sales and market value tumble
It's not just small business owners facing backlash. Tesla's stock slide from mid-December to late February wiped out more than $650 billion in market value, according to a Barron's report.
While EV sales in the U.S. have grown in volume — up 7.3% in 2024 — Tesla's sales fell more than any other manufacturer, according to Cox Automotive. Sales figures in other regions, including Europe and China, have also trended sharply downward.
Musk has long been polarizing, but his close ties with President Donald Trump, his role in the federal government's DOGE cost-cutting department and his erratic social media behavior appear to have led to consumer disruption.
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Find the best rate for youIs it a temporary dip?
Some Tesla owners may be experiencing collateral damage related to frustrations with Musk. The Cybertruck, with its unique design, has become an easy target for vandals.
But is this just temporary or does it signal a long-term decline for Tesla?
The company has previously faced stock dips, production challenges and PR crises, only to bounce back. Tesla remains a leader in EV manufacturing. Despite declining sales, it still commands a dominant share in the U.S. market.
On the other hand, Tesla now faces more competition than ever from automakers like Hyundai, Ford, General Motors, BMW and Rivian, all of which are seeking to expand their EV market share. Consumers who once flocked to Tesla for cutting-edge tech now have more choices — and Musk's increasingly polarizing persona may be driving some of them away.
For better or worse, the Tesla brand is fused with Musk himself. And as long as he remains at the center of controversy, there will continue to be questions about whether any slump is just a speedbump or a warning of something bigger down the road.
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