Tesla’s stock took a nosedive today, as investor confidence in Elon Musk’s electric vehicle giant crumbled. By midday New York time, shares had fallen $36.66, or 14%, to $226.11—erasing much of the post-election “Trump bump” that had briefly propelled the stock to $479 in December. As of 12:44 AM IST on March 11, real-time data showed Tesla at $221.192, reflecting a deepening slump and its lowest level since late October.
The plunge follows Musk’s high-profile backing of President Donald Trump, including a $270 million campaign donation in 2024. Initially, Tesla’s stock soared after Trump’s victory over Kamala Harris, but the glow has faded fast, with shares now down 40% from their mid-December peak. Analysts point to Musk’s role in Trump’s Department of Government Efficiency (DOGE), pushing federal layoffs and spending cuts, as a turn-off for Tesla’s eco-conscious, liberal-leaning customer base.
Sales figures paint a grim picture. Tesla’s global deliveries dropped last year—the first annual decline in its history. In California, its top U.S. market, sales are faltering, while China reported a near-50% sales drop in February compared to last year. Europe’s numbers are equally dire, with a 45% plunge in January, including 60% declines in Germany and France, per Jato Dynamics.
Musk’s political stances are also fueling the fire. Beyond Trump, he’s endorsed Germany’s far-right, pro-Russian party, slammed the UK prime minister as an “evil tyrant,” and dismissed Canada as “not a real country”—alienating key markets. Tesla showrooms in the U.S. face protests, with vandalized cars sporting stickers like “I bought it before Elon went nuts.”
The fallout extends beyond Tesla. Musk’s X platform crashed repeatedly on Monday, which he attributed to a “massive cyberattack,” while a SpaceX rocket exploded over Florida last week, following another failure in January.
Investors and buyers alike seem to be bailing on Musk’s empire, questioning whether his polarizing gambles will sink Tesla’s once-stellar trajectory—or if this is just a turbulent detour.