Tesla’s share price fell more than 8% as of 1:20 p.m. EST on Tuesday following reports that sales across Europe dropped approximately 45% over the last month. This decline occurred despite increased demand for rival electric-vehicle companies, causing Tesla owner Elon Musk’s net worth to drop by nearly $15 billion. Since December 31, Tesla’s stock price has fallen by 25%, when it was at $403.84.
The decrease in Tesla’s stock price followed a Bloomberg report indicating struggles with European sales over the last month. This period coincided with Musk becoming more involved in politics both in the U.S., as a key adviser to President Donald Trump, and in Europe, where he has openly supported far-right political parties. In January 2025, Germany saw the lowest monthly total of new Tesla car registrations since July 2021, while France experienced the same since August 2022.
According to an analyst note from Wedbush led by Daniel Ives, Tesla’s stock has been declining since the start of the year due to Musk’s role in the Trump administration. The note highlighted concerns that Musk dedicating significant time to the Department of Government Efficiency (DOGE) initiative could detract from his responsibilities at Tesla during a crucial year for the company. Although some worry that Musk’s actions might alienate consumers, these are largely seen as containable brand issues.
Musk has taken on an expanded role in Trump’s administration, leading DOGE, which aims to reduce government spending and waste. However, his team’s actions have sparked controversy, including layoffs of federal probationary employees and implementing tactics similar to those used at Twitter (now X). These actions have drawn criticism and legal challenges from various quarters.
— news from Forbes