Outlook Business Desk
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.
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.
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'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 market value loss exceeded the combined $86 billion market capitalisation of Ford Motor & General Motors.
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 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.
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.