Tesla share price plummets, wiping $800 billion from the company’s value

Tesla’s share price has dropped over 50% from its December high

Amid widespread market volatility, Tesla’s share price has fallen to $222.15, representing a 41.43% drop since the start of this year. This places Tesla share prices at a lower value than a year ago, and over 50% lower than the company’s all-time high of $479.86 (set in December 2024).

This week’s drop comes as the S&P 500 index fell by 3.1%. This drop was sparked by US President Donald Trump’s on-off tariff plans, which have brought financial instability to the country. This instability has hit Tesla hard, though it is not the only thing hurting the company’s share value.

Tesla’s decline isn’t just because of tariffs. The company’s vehicle sales have plummeted in Europe. There have been calls to boycott Tesla due to Elon Musk’s political beliefs. Simply put, Elon Musk’s association with the brand has become toxic. There are also concerns that Musk is too distracted to run Tesla effectively due to his work with Donald Trump and the US Department of Government Efficiency (DOGE). Furthermore, his actions with DOGE have further tarnished Elon Musk’s image in the eyes of many would-be customers.

Elon Musk has inserted himself into the global political landscape in recent months. Musk isn’t just supporting Donald Trump in the US. Musk has used his power to influence the politics of the UK, Germany, France, and other European nations. This is part of the reason behind Tesla’s declining sales in Europe, as many Europeans are not in favour of Musk’s politics or his desire to meddle in their nations.

(Tesla’s share price (Year to Date))

Can Tesla recover from this share price decrease?

Declining sales and overall market volatility have hit Tesla’s share value hard. The company’s value has dropped by over $800 billion since its December high. This has dramatically reduced Musk’s personal wealth, much of which is tied up in Tesla shares.

Will this trend reverse itself? Who knows. Will Tesla’s sales volumes increase again? Can Tesla finally deliver full self-driving? Will Tesla’s RoboTaxi and other robotics plans bear fruit? Many analysts expect Tesla’s value to continue dropping in the short term, with many brokerage firms marking the stock as a “strong sell.”

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