Stocks Plunge! The Impact of Elon Musk and Trump on Tesla

Written by Sara Aquino

Published on 05/04/2025 at 11:59

Updated on 05/04/2025 at 12:00

Foto: IA

Be the first to react!

Tesla Faces Steep Drop In Sales And Stock Devaluation Amid Controversies Involving Elon Musk And His Support For The Trump Administration.

The electric vehicle manufacturer is facing its most turbulent moment in recent years, with a collapse in sales and stock devaluation; analysts fear for Tesla’s future under Elon Musk’s leadership.

The Tesla, a giant in electric vehicles led by Elon Musk, is going through one of the most troubled periods in its history.

In the first three months of 2025, the company recorded a 13% drop in sales compared to the same period last year, delivering just under 337,000 cars — the lowest quarterly volume in three years.

ARTICLE CONTINUES BELOW

See also

The news had an immediate impact on the market: Tesla’s shares plunged at the opening of trading on Wednesday (2), intensifying concerns among investors and analysts.

The crisis faced by the American automaker is not only commercial but also political and institutional.

Elon Musk, who also plays a prominent role in President Donald Trump’s administration, has been heavily criticized for mixing his business interests with political activism.

Musk currently leads the Department of Government Efficiency (DOGE), an initiative created by Trump to reduce federal spending.

The billionaire’s controversial actions have sparked protests, boycotts, and even vandalism against Tesla vehicles in various countries.

According to experts, this political exposure has directly affected the brand’s image. “The more political involvement, the more the brand suffers. There is no discussion about that,” assessed Dan Ives, an analyst at Wedbush, in a statement.

For Ross Gerber, one of the company’s early investors, the situation is critical. “Tesla is in collapse and may not recover,” he stated in a post on social media platform X.

In addition to tough competition from China’s BYD in the global electric vehicle market, Tesla is facing increasing scrutiny from regulatory entities and institutional investors.

The New York City Comptroller is studying filing a lawsuit against the company after registering losses of over US$ 300 million in pension funds due to the stock devaluation.

Randi Weingarten, president of the American Federation of Teachers, has also called for explanations and actions from financial managers to protect retirement investments linked to Tesla.

Tesla, for its part, has downplayed the negative results, stating that the reported numbers represent only part of the quarterly performance.

A comprehensive report is scheduled for April 22, in which the company intends to detail the causes of the decline, which include the temporary suspension of Model Y production, currency fluctuations, and other operational costs.

However, market confidence remains shaken.

Tesla’s shares have already lost more than 25% of their value since the beginning of the year, and investors fear that Elon Musk’s political instability and his closeness to Trump may be diverting focus from the company’s management.

If Tesla aims to regain its leadership position in the electric vehicle sector, it will require more than financial adjustments — it will need to rethink its governance and institutional strategy, starting with Musk’s role in driving the business.

BBC

0 Comments

most recent

older Most voted

Stocks Plunge! The Impact of Elon Musk and Trump on Tesla

Tesla Faces Steep Drop In Sales And Stock Devaluation Amid Controversies Involving Elon Musk And His Support For The Trump Administration.

Engineers want to carve through Africa with a giant canal to bring water from the world’s second-largest river to a dying lake on the edge of the Sahara Desert that has already lost 90% of its water.

A giant brown band visible from space, approximately 8,850 kilometers long, connected Africa to America in the Atlantic Ocean, and satellites revealed that it is neither land nor pollution, but the largest accumulation of seaweed in the world, which broke records in 2025.

Instead of burning or burying old tires, an American city is transforming about 2,000 of them into the street itself, paving its first sections with a quieter and more durable rubber asphalt.

In just one cast, fishermen are surprised to capture 14,096 mullets in Bombinhas and close a historic season with 58,000 fish; scene recorded in the Santa Catarina paradise marks the last day of the 2026 season.

Consumers eat six times more chicken than in the 1960s, global meat supply quadruples in 60 years, and FAO report reveals the invisible cost on the plate: livestock could drive 80% of the increase in agricultural emissions over the next decade.

Greek island offers free housing for volunteers, but there’s a condition: you need to take care of rescued cats.

Motorcyclist sees excavator arriving at the edge of a river in Bosnia, calls neighbors in minutes and turns a hydroelectric project into a resistance lasting more than 10 years with five expired concessions.

Martian dust, potato starch, and a pinch of salt become “space concrete” twice as strong as the usual in research that could change the construction of bases outside Earth.

A family from Martins, in the interior of RN, planted seeds in their backyard that no one remembered where they came from and harvested a green and yellow fruit with the face of the Brazilian flag; the nickname “jerimum da Copa” caught on before they discovered what had actually grown there.

A family from Martins, in the interior of RN, planted seeds in their backyard that no one remembered where they came from and harvested a green and yellow fruit resembling the Brazilian flag; the nickname “World Cup pumpkin” caught on before they discovered what had actually grown there.

Goodbye oil-bathed belt? Company creates kit that replaces criticized system with metal chain and targets owners tired of engine headaches

Brazil hasn’t won a World Cup since the time when brick cell phones were a luxury, dial-up internet froze everything, ICQ had user numbers, and Windows XP seemed like futuristic technology.

Stocks Plunge! The Impact of Elon Musk and Trump on Tesla

Tesla Faces Steep Drop In Sales And Stock Devaluation Amid Controversies Involving Elon Musk And His Support For The Trump Administration.

Engineers want to carve through Africa with a giant canal to bring water from the world’s second-largest river to a dying lake on the edge of the Sahara Desert that has already lost 90% of its water.

A giant brown band visible from space, approximately 8,850 kilometers long, connected Africa to America in the Atlantic Ocean, and satellites revealed that it is neither land nor pollution, but the largest accumulation of seaweed in the world, which broke records in 2025.

Instead of burning or burying old tires, an American city is transforming about 2,000 of them into the street itself, paving its first sections with a quieter and more durable rubber asphalt.

In just one cast, fishermen are surprised to capture 14,096 mullets in Bombinhas and close a historic season with 58,000 fish; scene recorded in the Santa Catarina paradise marks the last day of the 2026 season.

Consumers eat six times more chicken than in the 1960s, global meat supply quadruples in 60 years, and FAO report reveals the invisible cost on the plate: livestock could drive 80% of the increase in agricultural emissions over the next decade.

Greek island offers free housing for volunteers, but there’s a condition: you need to take care of rescued cats.

Motorcyclist sees excavator arriving at the edge of a river in Bosnia, calls neighbors in minutes and turns a hydroelectric project into a resistance lasting more than 10 years with five expired concessions.

Brazil and Morocco face off on the field this Saturday for the World Cup, but off the pitch, the two countries engage in $2.8 billion a year in agricultural trade; Brazilian sugar alone accounts for nearly 60% of everything the African country buys from here.

The tax on blouses is out, but ICMS remains: understand why international purchases can still be costly for consumers

Partnership between Brazil and the European Union targets chips, AI supercomputer, and cloud services, as the government seeks to strengthen digital sovereignty in areas considered strategic.

BYD will invest up to R$ 500 million in batteries in Brazil after the government auction and could generate at least 400 direct jobs.

Frightened by the speed of Chinese manufacturers, Renault decided to mimic the pace, made the new electric Twingo in just 21 months, wants to repeat the feat with 36 models by 2030, and along the way, will cut up to 2,400 engineering positions.

Martian dust, potato starch, and a pinch of salt become “space concrete” twice as strong as the usual in research that could change the construction of bases outside Earth.

A family from Martins, in the interior of RN, planted seeds in their backyard that no one remembered where they came from and harvested a green and yellow fruit with the face of the Brazilian flag; the nickname “jerimum da Copa” caught on before they discovered what had actually grown there.

A family from Martins, in the interior of RN, planted seeds in their backyard that no one remembered where they came from and harvested a green and yellow fruit resembling the Brazilian flag; the nickname “World Cup pumpkin” caught on before they discovered what had actually grown there.

Goodbye oil-bathed belt? Company creates kit that replaces criticized system with metal chain and targets owners tired of engine headaches

Brazil hasn’t won a World Cup since the time when brick cell phones were a luxury, dial-up internet froze everything, ICQ had user numbers, and Windows XP seemed like futuristic technology.