Tesla’s stock price has plummeted 25% this year, outperforming only the Nasdaq index, which is down just 1.5%. The latest slide follows a report from Reuters that Tesla’s long-awaited upgrade to its partially automated driving system in China was met with disappointment from owners. Many users were underwhelmed by the “navigate on city streets” feature, citing it fell short of CEO Elon Musk’s promises for self-driving technology.
The disappointing report has reignited anxiety among Tesla shareholders, who are also concerned about the company’s performance and CEO Musk’s increasing involvement in politics. Musk is spending time in Washington, D.C., leading President Trump’s Department of Government Efficiency, which has raised eyebrows among opponents. The stock dropped earlier this month on news of tariffs on goods from Canada, Mexico, and China.
In its latest earnings report, Tesla missed analyst estimates, with automotive revenue dropping 8% and operating income plummeting 23%. Sales in California, the company’s largest domestic market, also fell 11.6% in the fourth quarter. Despite Musk’s efforts to boost shares after Trump’s election victory, most of the gains have been wiped out.
CEO Elon Musk has seen his net worth decline by over $100 billion this year due to Tesla’s performance slump. However, he remains the world’s richest person, with a fortune valued at around $380 billion. The company’s market cap is now below $1 trillion, its lowest since November 7, two days after Trump’s election victory.
Source: https://www.cnbc.com/2025/02/25/teslas-market-cap-sinks-below-1-trillion-as-stock-falls-more-than-9percent.html