Tesla’s struggles are deeply intertwined with Elon Musk’s growing role in the US government, which has taken a toll on the company’s performance. In February, the EV maker saw its worst month since December 2022, with a 28% decline in stock and a significant drop in European sales. Musk’s actions as cost-cutter-in-chief in the Trump administration have sparked global backlash, particularly in Europe, where Tesla is facing protests and market pressure.
Musk’s influence on the company extends beyond his role as CEO, as he is often seen as the face of the brand. His decisions outside the company have directly impacted performance, as evident from Wedbush analyst Dan Ives’ statement: “Tesla is Musk and Musk is Tesla.” This connection has been amplified by Musk’s involvement in controversial decisions within the Trump administration, including mass firings and the shuttering of humanitarian aid programs.
Protests and market pressure are mounting, with sales plummeting in countries like France and Germany. In Germany, car registrations dropped 76% compared to last year, while demand for Tesla’s EVs fell over 26% in France. The US has also seen a movement urging people to divest from Tesla, which Musk’s actions within the federal government have been linked to.
Tesla is facing increased competition in the market, with rival companies like Waymo expanding their self-driving services. Despite this, the company missed Wall Street’s estimates for its fourth-quarter results, reporting an 8% drop in automotive revenue. As a result, Elon Musk’s net worth has decreased by $103 billion, from $433 billion to $330 billion.
The tension between Musk’s political role and Tesla’s performance is becoming increasingly clear. With the company under pressure, it remains to be seen how Musk will balance his duties as CEO with his growing influence in the US government.
Source: https://fortune.com/2025/03/07/elon-musk-washington-teslas-stock-sinks-net-worth-down-103-billion