Tesla's stock faced significant turbulence on March 10, 2025, plunging by more than 15% and reaching its lowest trading price since just before the November 2024 election. This decline highlighted the loss of what many are calling the "Trump bump," as the company struggles with sales declines and mounting political backlash against its CEO, Elon Musk.
On this day, Tesla shares closed at $222, propelling the company's stock down over 53% since its peak of $479.86 on December 17, 2024 – wiping out nearly $800 billion from its market capitalization. Analysts noted it was Tesla's worst single-day performance since September 2020 and marked the seventh-worst trading day since the company went public 15 years ago.
The stock market struggles are part of broader trembling conditions concerning President Trump’s economic policies. The tech-heavy Nasdaq Composite dropped nearly 4% on the same day, pushing the index firmly within 10% of correction territory. Among the factors directly affecting Tesla, UBS analyst Joseph Spak predicted a 5% decline in Tesla's 2025 vehicle deliveries, contrasting sharply with the consensus forecast of 12% growth.
Sales reports tell another story of distress; data from January revealed Tesla's new vehicle sales had plummeted about 50% year-over-year in Europe, caused partly by growing consumer distaste for the brand reflected increasingly by reports of vandalism and protests against Musk's outspoken political positions. Notably, monthly electric vehicle sales for Tesla in China also tumbled more than 50% during the same period, exacerbated by his divisive political maneuvering.
When discussing the potential ramifications of the political fallout, Ben Kallo, an analyst for Baird, articulated, "When people's cars are in jeopardy of being keyed or set on fire out there, even people who support Musk or are indifferent might think twice about buying a Tesla." This statement emphasizes the growing danger to Tesla's brand from the toxicity surrounding Musk's political role, particularly since his leadership of the Department of Government Efficiency coincided with significant job cuts, provoking public outrage.
While Tesla faced declines, the broader global electric vehicle market saw growth, with overall sales increasing 21% compared to the previous year. European demand, historically strong for Tesla, appears patchy as competitors like Volkswagen began outselling Tesla at the start of 2025. Analysts believe these company-specific sales challenges could be linked to the overwhelming political climate and Musk’s approachable yet controversial public persona.
Reports of vandalism at Tesla facilities have compounded their struggles, particularly with recent instances of arson targeting charging stations and dealerships. Tesla stores have seen demonstrations against Musk’s autonomy and political engagements, forcing the company to grapple with fallout from activists who feel betrayed by the CEO’s political endorsements and positions.
Further pressuring Tesla's prospects, reports showed impressive competition from automakers outside of Tesla's usual market dominance. Volkswagen surpassed Tesla in electric vehicle sales outside of China for the month of January 2025—a significant benchmark showcasing consumers' shifting preferences amid rising competition.
The political undercurrent tied to Musk's actions has raised concerns from within the investment community, with some questioning his ability to balance corporate responsibilities with his controversial and highly publicized role within the Trump administration. Analysts warn this oversaturation of publicly politicized engagement could inadequately leave management sidelined, allowing market opportunities to slip through the cracks.
Given these challenges, it appears there will be hurdles remaining for Tesla as it attempts to reestablish itself both within U.S. markets and globally. The notion of the "Trump bump" is now firmly abandoned as the company faces scrutiny from activists, consumers, and analysts alike, reflecting tremors through shares and revenues plagued by political strife and management concerns.