Tesla stock price struggles to recover as Musk takes popularity hit
Tesla stock continues to lose in price
Over the past week, Tesla's stock has experienced a significant decline, with its price dropping approximately 15.4% by 17 March 2025, closing at $222.15.
This decline is part of a broader downward trend, with the stock losing about 45% of its value since reaching an all-time high of $1.5 trillion in market capitalization on 17 December 2024 as the market responded to Trump’s victory
Tesla stock price dynamic. Source: Traders Union
According to Google Trends, the number of people worldwide who make a “selling Tesla stock” search increased in the last 30 days, peaking on 11 March 2025 when 100 inquiries were made. As of 17 March, the number of such searches stood at 28.
Canada vs. Musk
Elon Musk’s extensive involvement in Trump’s government as part of the Department of Governmental Efficiency (DOGE) alongside his overt support for a variety of politicians worldwide, particularly the German extreme right-wing party AfD, is among the reasons for the price plunge.
Tesla stock dropped below the $250 support zone as reports of vandalism targeting Tesla vehicles and facilities have become widespread, with the brand image taking a toll as a result.
Canada, one of the chief targets of Trump’s tariff war, also dubbed by Musk “as not a real country” despite his having Canadian citizenship, is leading the Tesla stock sell-off interest. A study by the Angus Reid Institute showed that 71% support a ban on Tesla sales due to Musk’s conduct.
Furthermore, Ottawa’s tariff retaliation has impacted U.S.-made EVs, including Tesla’s, with some officials even proposing a 100% tariff on the vehicles, targeting Musk’s ties to Trump.
Tesla's sales have underperformed in key regions. In February 2025, sales declined by 2% year-over-year in the U.S., 49% in China, and 76% in Germany, despite overall market growth in these areas.
Finally, growing competition from Chinese manufacturers is another factor contributing to the bearish sentiment. In January, the Texas-based EV giant’s European sales plunged 45% when the region’s overall EV sales surged 34%, with China’s BYD gaining momentum.
Despite the decline, some retail investors remain optimistic about Tesla's long-term prospects, capitalizing on the buying opportunity.
