Elon Musk’s once-promising electric vehicle company, Tesla, is facing a crisis of confidence on Wall Street. Despite being the world’s leading EV brand in the US, Tesla shares have plummeted over 40% since January, erasing the “Trump bump” that briefly propelled the stock to a 90% gain after the presidential election.
Musk’s personal wealth has taken a hit, with his net worth decreasing by $121 billion over the past three months. So, what’s behind Tesla’s downward spiral? Two main reasons: plummeting sales globally and the lack of effective action from Musk himself.
Tesla reported its first-ever drop in global sales last year, and this year’s numbers aren’t looking much better. Wall Street analysts have lowered their delivery forecasts for the company, citing struggling sales in China, particularly against domestic carmakers. In Germany, Tesla sales have fallen 76% year-over-year due to outrage over Musk’s support of a far-right nationalist party.
The recent news is further eroding Tesla’s market share. A rival company, BYD, unveiled a new charging system that can give its cars 250 miles of range in just five minutes – twice as fast as Tesla’s rate. Meanwhile, Tesla launched a free trial for its “Full Self-Driving” software, signaling the company’s desperation to regain ground.
These developments have left investors worried about Tesla’s prospects even with a normal CEO. However, Musk’s unconventional approach and personal brand issues are exacerbating the problem. A CNN poll found that 53% of Americans view Musk negatively, raising concerns about his ability to lead the company.
Prices on pre-owned Teslas are falling at an alarming rate, with used cars overall declining 2.7% year-over-year and used Teslas down 7.3%. The “Tesla Takedown” movement, advocating for selling Tesla vehicles and protesting showrooms, is gaining momentum on social media.
As investors become increasingly impatient with Musk’s leadership, the questions remain: what happens when Tesla stops being the dominant player in electric vehicles? And how will Musk address these issues to restore confidence in the company?
Source: https://edition.cnn.com/2025/03/19/business/elon-musk-tesla-stock-nightcap/index.html