On March 18, 2025, Minnesota Governor Tim Walz brought a touch of humor to the economic anxieties surrounding electric vehicle giant Tesla during a public appearance in Wisconsin. Walz quipped that he boosts his mood by tracking the company's stock performance, particularly noting its decline, prompting laughter from the audience. "There’s this thing on my phone, I know some of you know this, on the iPhone. They’ve got that little stock app. I added Tesla to it to give me a little boost during the day... 225 and dropping!" the governor said, referring to the company's plummeting stock price.
Elon Musk, Tesla's CEO, responded on the social media platform X, saying, "Sometimes when I need a little boost, I look at the @JDVance portrait in the @WhiteHouse and thank the Lord," adding a praying hands emoji. His response reflects the ongoing scrutiny he has faced amid unpredictable stock market shifts, particularly following the Trump administration's tariffs and policies.
Currently, Tesla's stock is down a staggering 34.6 percent in just the past month, closing at $235 a share as of March 19, 2025, according to the Nasdaq composite. Once riding high, Tesla's stock was valued at $479 a share last December but has since undergone significant depreciation, fueled in part by investor concerns over the impacts of Trump's economic measures.
Musk's financial landscape has undoubtedly transformed with his net worth dropping approximately $130 billion this year, or by 30 percent. Tesla's overall market capitalization has been affected as well, plummeting by around $800 billion, as the company fell from its peak valuation. This drastic drop has led to Musk now holding a stake in Tesla that is worth only $92.6 billion compared to a more substantial $136 billion in SpaceX, marking a $43 billion comparative gap that has raised eyebrows among financial analysts.
The timing of Walz’s comments coincides intriguingly with increased skepticism in the market about Tesla's sales and demand. Over the past few months, short sellers have profited immensely to the tune of more than $16 billion amidst reports of protests against the company, further fueling distrust among consumers who view Musk's political connections as a negative factor. One expert, Kevin Thompson from the finance sector, stated, "Tesla has been taking a hit in the U.S., partly due to Elon's involvement with the Trump administration, which isn't sitting well with the company's largely liberal customer base. Expect continued declines in the American market..."
Notably, recent transactions involving Tesla executives markedly highlight this uneasy climate. Among the prominent sales, board member James Murdoch sold shares worth approximately $13 million on March 10, which aligned with Tesla's largest single-day stock decline in the last five years. Chairman Robyn Denholm offloaded more than $75 million in shares over recent weeks, and Kimball Musk, brother to Elon, sold 75,000 shares valued at around $27 million. CFO Vaibhav Taneja has also sold over $5 million worth of shares just days ago.
While some financial experts, such as Michael Ryan, suggest these sales reflect prudent portfolio management decisions rather than alarm over Tesla's future, concerns still linger about the reasons behind the mass stock movement. Ryan comments, "It isn't necessarily a red flag for the company's future, but more a reflection of smart portfolio management." Conversely, Alex Beene, a financial literacy instructor, adds a more cautious perspective: "When it comes to large-scale stock owners, it's always difficult to say the exact reason for selling... a sale of this size garnering headlines certainly does Tesla no favors as the stock continues to descend."
In a controversial twist, President Trump recently announced plans to label violence against Tesla as domestic terrorism, stating, "I will do that. I'm going to stop them. Because they are harming a great American company. It's a great product, and we have to celebrate [Musk]." This statement underscores the government's defense of Musk amidst the tumultuous economic backdrop, although the practical implications remain unclear as tariffs on essential markets like Mexico and Canada threaten to compromise Tesla's competitiveness further.
As the situation develops, with Walz's light-hearted jab at Musk juxtaposed against serious questions over economic stability and corporate governance, the future of Tesla—and indeed of Musk—remains on precarious ground. Concerns about stock performance and demand could push stakeholders to reassess their positions, while the broader market continues to adapt to the turbulence stirred by political issues and corporate actions. Ultimately, how Musk navigates these challenges will be critical in determining Tesla's trajectory in the coming months and whether it can reclaim its status as a leader in the electric vehicle space.
