(NewsNation) — Elon Musk’s political influence is on the upswing, but you can’t say the same about Tesla’s stock price.
The electric vehicle giant’s stock hit a fresh 2025 low on Thursday, now down 25% year to date.
Tesla shareholders haven’t had much to celebrate recently. Slowing sales in Europe, increased competition in China and political blowback against the company’s divisive leader could all be factors in the recent sell-off.
Should you expect a check from Elon Musk’s DOGE cuts?
Musk, the richest man in the world, has seen his net worth plunge by roughly $83 billion since the start of the year.
On the other hand, investors could just be locking in their gains after the stock surged following Donald Trump’s election victory. The share price is still up roughly 40% from a year ago.
Here’s what’s going on with Tesla and where the company’s stock price could go from here.
Why is Tesla stock down?
The American automaker’s stock price has fallen amid declining sales and increased competition, but pushback against the company’s politically polarizing leader, Elon Musk, could also be unnerving investors.
Tesla’s new vehicle sales were down 45% across Europe last month, according to data from the European Automobile Manufacturers’ Association.
The sales slump occurred even as overall EV sales soared 37%, meaning demand was strong, but Europeans weren’t choosing Teslas.
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Tesla sales have also slowed in China, down 11.5% in January from a year earlier, CNBC reported. Meanwhile, lower-cost Chinese rivals like BYD and Xpeng saw sales grow over the same period.
Earlier this week, Tesla made a long-awaited update to its autopilot software in China but the technology fell short of expectations, according to Reuters.
Musk’s political entanglements could also be turning consumers away. The Tesla CEO has become a central figure in the Trump administration, even addressing the press alongside the president in the Oval Office.
He’s also waded into European politics, voicing support for right-wing politicians in Germany and calling for the United Kingdom’s center-left prime minister to be jailed.
Some in the U.S. — and abroad — have said they are ditching their Teslas over Musk’s politics.
Tesla and SpaceX CEO Elon Musk, joined by his son X, delivers remarks alongside U.S. President Donald Trump during an executive order signing in the Oval Office at the White House on Feb. 11 in Washington, D.C. Trump signed an executive order implementing the Department of Government Efficiency’s “workforce optimization initiative,” which, according to Trump, will encourage agencies to limit hiring and reduce the size of the federal government. (Photo by Andrew Harnik/Getty Images)
What are analysts saying?
A recent Pew Research survey found most Americans (54%) view Musk unfavorably. Polls show he’s even less popular among Germans and Brits.
“Tesla’s biggest challenge in 2025 isn’t technology — it’s perception,” Jacob Falkencrone, global head of investment strategy at Danish bank Saxo, told Bloomberg this week.
Falkencrone added: “Elon Musk’s political baggage is now weighing on sales, brand loyalty and investor confidence.”
Analysts at Wedbush also highlighted Musk’s political liability in a recent report, noting that his recent actions could “alienate some consumers.”
Another concern? The Tesla CEO’s focus.
“The worry of the Street is that Musk dedicating so much time (even more than we expected) to DOGE takes away from his time at Tesla in such a crucial moment and year for the company,” the Wedbush analysts wrote.
Still, Wedbush remains bullish and thinks Tesla’s recent brand hit is “containable” and “not a major cause for concern.” The analysts pointed to a new vehicle launch and self-driving developments as reasons for optimism.
While Tesla’s stock price has fallen from its post-election surge, shares are still up about 40% from a year ago. The company remains the most valuable automaker in the world by market capitalization and it’s not particularly close.
What has this done to Elon Musk’s net worth?
With a total net worth of nearly $350B, Musk is still the richest person on the planet — for now.
The Bloomberg Billionaires Index, a daily ranking of the world’s richest people, shows Musk well ahead of Meta’s Mark Zuckerberg, who ranks second with a $237B net worth.
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Tesla’s recent struggles have lowered the value of Musk’s fortune by about $83 billion since the start of the year. That’s because Tesla shares and options make up more than 60% of Musk’s net worth, according to Bloomberg.
The total net worth of the ten richest people in the world as of Feb. 26, 2025, according to the Bloomberg Billionaires Index:
Elon Musk: $349B
Mark Zuckerberg: $237B
Jeff Bezos: $235B
Bernard Arnault: $195B
Larry Ellison: $193B
Bill Gates: $166B
Larry Page: $156B
Warren Buffet: $155B
Sergey Brin: $147B
Steve Ballmer: $140B
