Tesla’s share price fell more than 8% as of 1:20 p.m. EST on Tuesday after reports that sales for the company across Europe fell about 45% over the last month—despite rival electric-vehicle companies seeing increased demand—causing Tesla owner Elon Musk’s net worth to plummet by almost $15 billion.
A general view of the Tesla headquarters in France is located in Saint-Ouen-sur-Seine, north of ... [+]
Tesla’s stock price was at $302.6 as of 1:20 p.m. EST, 8.4% lower than its opening price on Tuesday.
Tesla’s market capitalization was also down to $972.98 billion as of midday, though the last time Tesla’s market capitalization closed below $1 trillion was last November.
Musk’s net worth on Tuesday afternoon was down nearly 4% to $365.3 billion—almost exactly $100 billion below its end-of-day peak of $464 billion on Dec. 17, 2024, according to Forbes’ calculations.
Technology stocks fell broadly Tuesday, albeit less than Tesla, as the tech-heavy Nasdaq dropped 1% to its lowest price in more than a month.
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25%. That’s how much Tesla’s stock price has fallen since Dec. 31, when it was at a price of $403.84.
The decrease in Tesla’s stock price came after Bloomberg reported the company has been struggling with European sales over the last month as Musk has become more involved in politics both in the U.S. as a key adviser to President Donald Trump and in Europe, where he has been more openly backing far-right political parties. According to the Bloomberg report, January 2025 saw the lowest monthly total of new Tesla cars registered in Germany since July 2021—where Musk has been supporting the far-right Alternative for Germany party—and in France since August 2022.
Tesla’s stock has been slumping since the start of the year because of Musk’s role in the administration of President Donald Trump, according to an analyst note from Wedbush led by Daniel Ives on Monday. “With this influence in the Trump Administration and the broadening DOGE initiative in the 202 area, there has been a visible perceived downside impact weighing on Tesla shares,” read the Wedbush note, which added: “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 note mentioned that Musk’s actions may “alienate some consumers to move away from the Tesla brand,” but said that is viewed largely as “containable brand issues” for Tesla that are “not a major cause for concern.”
Musk has taken on an increased role in Trump’s administration as the unofficial leader of the Department of Government Efficiency, or DOGE, which is working to slash government spending and waste. His team’s actions have been increasingly controversial, however, as the government has moved to layoff thousands of federal probationary employees quickly and has tried to implement some tactics Musk used when he took over Twitter, now called X, including requiring employees to send notes explaining what they had achieved over the last week to supervisors—though some agency directors have advised employees not to comply with that request. In addition to broad criticism from Democrats, Musk and Trump are facing a number of lawsuits and legal challenges over their actions since Trump took office in late January.
Tesla Sales Fall 45% in Europe Amid Musk’s Political Meddling (Bloomberg)
Here's Where Trump And Musk Are Winning—And Losing—In Court (Forbes)