Shares of Tesla have seen their worst performance in years as top executives and board members sold off over $100 million worth of stock amid plummeting stock value and intense competition, particularly from the Chinese electric vehicle market. Tesla’s stock has dropped nearly 50% since peaking in December 2024, shedding hundreds of billions of dollars from the company’s market value.
Recent filings with the U.S. Securities and Exchange Commission reveal significant transactions involving Tesla executives. Notably, on March 10, 2025, James Murdoch, who has been on the board since 2017, sold shares worth approximately $13 million to cover the exercise price for stock options. Murdoch’s sale came amid the stock’s largest single-day decline in five years. His actions are part of broader trends at Tesla: four top officers have sold over $100 million worth of shares since February.
Kimbal Musk, the brother of CEO Elon Musk and fellow board member, sold 75,000 shares for about $27 million last month. Meanwhile, the board chairman, Robyn Denholm, has divested more than $75 million worth of shares under a predetermined sales plan she adopted back in July 2024. Reports indicate these stock options are typically intended to avoid any appearance of insider trading, yet the timing raises eyebrows.
Data from the electric vehicle market shows Tesla’s struggles are compounded by weakening demand across key markets including the U.S. and China. On March 17, 2025, Tesla shares fell nearly 5%, continuing a streak of declines throughout 2025, which echoed the company’s performance from the previous year. Analysts have pointed to disappointing demand, with Mizuho predicting Tesla might deliver only 1.8 million vehicles this year, down from previous estimates of 2.3 million.
Particularly concerning are Tesla's troubles with self-driving capabilities, especially when operating within China’s complex regulatory environment. Recently, the company has launched a free trial of its Full Self-Driving (FSD) software for existing users, running from March 17 to April 16, 2025, but this has not alleviated concerns among investors who remain worried about its long-term viability.
Elon Musk himself has acknowledged challenges pertaining to data privacy laws prohibiting the transfer of vehicle data outside of China, creating obstacles for optimizing FSD capabilities. “We do have some challenges ... they currently don’t allow us to transfer training video outside of China. And then the US government won’t let us do training in China. So, we’re in a bit of a bind there,” he stated during Tesla’s Q1 earnings call.
The automotive marketplace is growing increasingly competitive, particularly from other Chinese EV makers like BYD, Xpeng, and Xiaomi, each developing advanced technologies aiming to challenge Tesla's market share. BYD has made substantial strides, developing its own driver assistance systems, which could pose significant threats to Tesla's FSD technology.
Alarming trends have also surfaced from Tesla's sales reports. Research indicates Tesla’s shipments fell by 49% year-on-year within China, bringing their total to just 30,688 vehicles for February 2025, marking the lowest monthly shipment since July 2022. Comparable declines have been noted across the pond as well, with Tesla’s sales across Europe plummeting about 50% compared to January 2024.
Such declines have led analysts to question the impact of Musk's political activities. He is currently head of the Department of Government Efficiency under the Trump administration, and his controversial involvement has sparked protests against the brand both domestically and internationally. Such external pressures, along with personal political positions, could be contributing to Tesla’s image erosion among consumers.
Recent comments by industry experts suggest the loss of brand value may be unprecedented. Analysts from JPMorgan remarked, “We struggle to think of anything analogous in the history of the automotive industry, in which a brand has lost so much value so quickly.” Such evaluations highlight the gravity of Tesla's current challenges.
Musk has responded next to none of these fears, claiming he is not concerned about the recent drop in stock values, which remains closely tied to his financial standing. For many, the stakes are considerably high, as profits derived from Tesla share sales have significantly impacted Musk's overall wealth and investments on ventures like Twitter, now known as X.
Despite the tumult, some analysts still shy away from calling the game over for Tesla. They see the company as transitioning from solely focusing on automotive production toward a broader technology and AI strategy. Morgan Stanley's Adam Jonas addressed this shift, stating, “Tesla’s softer auto deliveries are emblematic of a company transitioning to AI and robotics,” reflecting the notion of potential long-term growth beyond mere electric vehicle sales.
For now, as Tesla battles both internal and external pressures, the road forward seems uncertain. Investors are left to weigh Musk's significant political maneuvers alongside dwindling sales and aggressive market competition. The coming months will be pivotal, shaped by both market forces and the capacity for Tesla to regain its foothold amid the turbulence.
