Mon. 07 Jul 2025
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Date: 07-jun-2025 | By: Nuztrend Team
Tesla Inc., the electric vehicle pioneer led by billionaire CEO Elon Musk, has lost approximately $380 billion in market capitalization in 2025, making it the worst-performing large-cap stock of the year. This massive decline is largely attributed to a heated public feud between Musk and U.S. President Donald Trump, along with waning EV demand and growing investor unease.
The tensions between Musk and Trump erupted earlier this year when Musk publicly criticized the president's new tax and trade policies on X (formerly Twitter). In retaliation, President Trump threatened to terminate government contracts with Musk’s businesses, including Tesla and SpaceX.
The feud created a media frenzy, spooking institutional investors and prompting analysts to revise Tesla’s valuation downward. By mid-year, the company’s global market rank fell from eighth to tenth.
Beyond the political crossfire, Tesla has faced growing challenges in consumer markets. Sales in Europe, especially Germany, have slumped significantly amid backlash over Musk's public behavior. A 2025 consumer poll in Germany revealed that 94% of respondents would not consider purchasing a Tesla vehicle.
In Canada and other key markets, EV demand has softened, fueled by increased competition, economic slowdown, and rising prices. Tesla's perceived alignment with controversial political narratives has further alienated potential buyers.
The fallout has triggered a wave of activism. The grassroots "Tesla Takedown" movement has gained traction, urging individuals and institutions to divest from Tesla and boycott its products. Their goal is to challenge Musk’s growing political influence and force accountability.
Though the White House recently organized a call between Musk and President Trump in an attempt to ease tensions, the long-term damage may already be done. Tesla’s future now hinges on whether it can rebuild public trust, pivot product strategy, and regain investor confidence in a fiercely competitive EV market.
For now, Tesla’s $380 billion market value plunge remains one of 2025’s most dramatic financial collapses.
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