Tesla Stock Plunge: Is Musk or DOGE to Blame?

Outlook Business Desk

Tesla Lost $130 Billion

Tesla Inc. experienced its sharpest drop in over 4 years extending its decline in 2025 as Wall Street's concerns over demand for its electric vehicles grow. The company lost $130 billion in market value, bringing its shares to their lowest since October.

Struggle with Business

Elon Musk mentioned in an interview with Fox Business that he is managing his businesses with great difficulty while collaborating with the Trump administration. His high-profile role as the public face of DOGE is beginning to affect the companies he owns and oversees.

Musk's $132 Billion Loss

Elon Musk, the world's richest man has seen a significant decline in his wealth. His net worth peaked at $486 billion in December 2024 but has lost $132 billion since the start of the year. On Monday his fortune shrank by $29 billion due to the decline in Tesla's stock.

Tesla Shares Drop 15%

Tesla's share fell 15% to $222.15 contributing to a 4% decline in the Nasdaq as fears grew that tariff imposed by the Trump administration could lead to recession.

Tesla’s Loss Surpasses Ford & GM Combined

Tesla's market value loss exceeded the combined $86 billion market capitalisation of Ford Motor & General Motors.

Protests Erupt Over Musk's Actions

Musk's role in major federal workforce cuts at Trump's request has triggered "Tesla Takedown" protest across the U.S. Meanwhile Tesla's sales in Europe have also dropped. On Sunday dozens of protestors gathered outside a Tesla showroom in Lisbon some holding signs that read "Boycott Tesla".

Investors in Worry

Investors worry that Musk's leadership of the DOGE aimed at reducing government spending is drawing his attention away from his companies including Tesla, SpaceX, X, & xAI.

Supporters Holds Musk Vision

Despite Tesla's recent stock decline its shares still trade at significantly higher multiples than other automakers as supporters remain optimistic about Musk's vision for self-driving taxis & humanoid robots.

Elon Musk's X Hacked by Pro-Palestinian Dark Storm, Allegedly Linked to Ukraine

Read More