• by Tanya Gazdik , March 11, 2025

Despite climbing slightly on Tuesday, Tesla stock is on pace to fall for an eighth consecutive week, overlapping with CEO Elon Musk's time working in the Trump administration.

“Tesla's stock price had surged to a record close of $479.86 about a month after Trump’s election victory, but since Musk started working in the cost-cutting Department of Government Efficiency in January, the EV maker's shares have lost almost half their value,” according to Invetopedia. “Recent losses have come amid worries about slowing sales in China and declining registrations in Europe, as well as widespread market uncertainty about tariffs.”

On Tuesday, Trump tried to drum up Tesla sales on social media, asking "Republicans, Conservatives, and all great Americans" to support Musk, who has been putting his energies into trying to slash federal government jobs.

“President Donald Trump has said he will ‘buy a brand new Tesla’ after shares in the electric car firm fell more than 15%,” according to the BBC. “Trump blamed ‘radical left lunatics’ boycotting the firm to ‘attack and do harm’ to Tesla owner Elon Musk. However, stock analysts said the main reason for the poor performance of the shares was fear about Tesla meeting production targets and a drop in sales over the past year.“

Trump's own economic policies on tariffs are also making investors nervous, analysts said.

Meanwhile, Trump allowed Musk to park an assortment of Teslas at the White House yesterday as the two walked among them and talked about their attributes and prices. Critics said the spectacle stretched the bounds of what is ethical in the White House, with Trump openly seeking to boost the financial fortunes of Elon Musk, according to The Washington Post. 

“Trump had turned the South Lawn of the White House into a car lot, converting one of the country’s most revered public spaces into a billboard for a company run by one of his closest allies. And for the afternoon, he made no secret of the fact that he was attempting to boost the financial fortunes of one of his supporters — whose cars, he noted, could be had for the ‘low, low price of $35,000.’“ according to The Washington Post.  ”In a remarkable scene, Trump spent about 30 minutes talking with reporters as he kicked the tires on some of the five Teslas that had been parked on the drive of the White House for his shopping pleasure. The display offered a momentary distraction from an economy that has seen rising egg prices and plunging stocks. And it provided a vivid reminder of how transactional Trump can be, openly punishing his enemies and, in this case, just as openly rewarding his friends.”

Musk's personal net worth has dropped $148 billion since Inauguration Day, according to the Bloomberg Billionaire Index. During an interview this week, Musk addressed the difficulties.

"You're giving up your other stuff," Fox Business' Larry Kudlow asked Musk during an interview. "How are you running your other businesses?”

"With great difficulty," Musk replied.

Critics wonder what it will take for the Tesla board to exert its fiduciary duties. 

“The stock plunge has caused outrage among some shareholders, who have publicly questioned Musk's commitment to his electric vehicle company or called on the Tesla board to replace him,” according to ABC News. “Another group that's now sounding the alarm: pension fund managers.”

Tesla’s market capitalization remains up about $65 billion since the election. 

“Tesla continues to fetch a valuation far above those of the world’s biggest automotive and technology firms, judging by standard financial metrics,” p er Reuters. “That’s because most investors and analysts have bought Musk’s pitch that the world’s most-valuable automaker isn’t really a car company at all, but rather an artificial-intelligence pioneer that will soon unleash a revolution in robotaxis and humanoid robots.”

Tesla’s new vehicle sales plummeted about 50% in Europe in January from a year earlier, partly owing to growing distaste for the brand. 

“Global sales of electric vehicles, including fully electric and plug-in hybrid models, increased 21% in January from a year ago, even as Tesla’s sales declined,” according to CNBC. “The growth was driven by demand in Europe, according to Bank of America.”