On Friday, Tesla closed its seventh consecutive week of losses, the longest losing streak since its stock market debut in 2010. The stock has declined every week since CEO Elon Musk took on a key role in the second Trump administration.
Since peaking at $479.86 on December 17, Tesla shares have lost more than 50% of their value, erasing over $800 billion in market capitalization. Monday marked the stock’s seventh worst day on record.
Tesla led a broader downturn in U.S. equities, with the Nasdaq dropping nearly 4%, its steepest decline since 2022.
In a televised interview on Monday evening, Musk was asked how he manages to run his businesses while fulfilling his role in the Trump administration. He responded, saying he is doing so “with great difficulty.”
Beyond Tesla’s struggles, Musk’s social network X experienced multiple outages throughout the day, while his aerospace company is investigating two consecutive explosions that occurred during test flights of the Starship rocket.
During the same interview, Musk stated that he expects to remain in the administration for another year. After the broadcast, he posted on X, saying, “It will be fine long-term,” referencing Tesla’s steep stock decline.
Tesla’s stock downturn has been fueled by uncertainty surrounding the Trump administration’s tariff policies. Canada and Mexico are key markets for automotive suppliers, and the possibility of increased tariffs could trigger a trade war, affecting production and leading to higher prices.
The company is also facing brand erosion due to Musk’s controversial political statements and his deep involvement with the Trump administration, where he leads the so-called Department of Government Efficiency. Musk has become the public face of efforts to drastically reduce the federal government’s workforce and spending.
Meanwhile, Musk has used X to target judges whose rulings he disagreed with and has amplified narratives aligned with Kremlin propaganda about Ukrainian President Volodymyr Zelenskyy.
Activists and former Musk supporters have staged protests at Tesla facilities across the U.S., and Tesla locations have been targeted by vandalism and arson attempts. Repeated arson and vandalism incidents have been reported at a Tesla store and service center in Colorado, with the most recent occurring on March 7.
Some analysts have pointed out that reports of vandalism could impact demand for Tesla vehicles. One noted that if people feel their cars are at risk of being keyed or set on fire, even those who support Musk or are indifferent to him might think twice before purchasing a Tesla.
A recent financial report indicated that Tesla’s new vehicle sales in Europe plummeted by about 50% in January compared to the previous year, partly due to declining enthusiasm for the brand. The report also noted that some potential buyers are waiting for the new version of the Model Y.
Despite the decline in Tesla’s sales, the Model Y remained the best-selling electric vehicle globally in January, followed by a Chinese automaker’s model, which surpassed the Tesla Model 3 sedan for the month.
Overall, global sales of electric vehicles, including fully electric and plug-in hybrid models, increased by 21% in January from a year earlier, driven by strong demand in Europe, even as Tesla’s sales declined.
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