Is Elon Musk’s White House Stint Costing Tesla Its Shine? A Record-Breaking Slump In Tesla Stocks, Also Wiped $121 Billion Off Musk’s Fortune!

Since, Elon Musk’s political ambitions seem to have taken center stage, Tesla’s stock has never looked this battered. Seven straight weeks of decline, a record for the company, have left the EV giant’s stock gasping for air. And what’s changed in those weeks – well, for starters, 

Since Musk’s much-publicized entry into the Trump administration as an advisor and head of the Department of Government Efficiency or DOGE, Tesla’s stock has been in freefall. The company closed last Friday at $270.48, marking the longest losing streak since Tesla went public 15 years ago. Just to put things into perspective, Tesla has lost more than $800 billion in market cap since peaking at nearly $480 per share on December 17.

Wall Street Is Worried, And So Are Investors

The financial big guns aren’t too thrilled either. Bank of America, Baird, and Goldman Sachs have all slashed their Tesla price targets, citing declining EV sales, lack of updates on an affordable model, and the company’s struggle to keep up with production. Bank of America took its target down from $490 to $380, while Goldman Sachs trimmed it to $320 from $345, pointing to falling Tesla sales in China, Europe, and parts of the U.S.

Adding fuel to the fire, Tesla’s much-hyped Full Self-Driving software faces stiff competition, especially in China, where local competitors don’t charge extra for similar smart-driving features. And then there’s the issue of production delays. Tesla’s Model Y SUV revamp is causing supply chain headaches that are complicating its ability to meet demand.

Is Musk’s Politics Alienating Tesla’s Fanbase?

Beyond numbers and production woes, the elephant in the room is Musk himself. His growing involvement in politics and vocal support for Trump have become a wild card for Tesla’s brand perception. Investors are jittery, wondering whether Musk’s right-leaning political stance will dent Tesla’s reputation among its traditionally progressive customer base.

Anti-Musk sentiment is growing, especially in Europe and parts of the U.S., where Tesla is facing protests, arson attacks, and even vandalism at its facilities. Even hardcore Tesla loyalists are reconsidering their allegiance. CleanTechnica, a longtime Tesla cheerleader, recently published an ethics-driven column debating whether Tesla owners should sell their cars and whether the board should consider ousting Musk as CEO.

Tesla Bulls Are Holding On, But For How Long?

Despite all this turmoil, some analysts believe the worst might soon be over. Dan Ives of Wedbush Securities sees the current dip as a ‘gut check moment’ for Tesla investors but remains optimistic. He has even added Tesla to his ‘Best Ideas’ list with a 12-month price target of $550, banking on a deregulatory environment under Trump that could work in Tesla’s favor.

The bulls are betting on Tesla’s future, new affordable EVs, a robotaxi service, and even humanoid robots that could redefine automation in factories. TD Cowen analysts argue that Tesla is at the start of a major 2025-26 product cycle, which they believe could reinvigorate sales and improve investor sentiment

Tesla Sales Crash 76% in Germany: Is Musk’s Right-Wing Ties to Blame?

Well, this isn’t looking good for Tesla. The EV giant, once seen as an unstoppable force in the automotive world, is also now facing a serious slowdown in Europe, and the timing is way too close to Elon Musk’s political affiliations to ignore.

In February 2025, Tesla’s sales took a nosedive across multiple European markets—24% down in the Netherlands, 42% in Sweden, and an eye-watering 76% collapse in Germany.

The worst part is that while Tesla struggled, overall EV sales in Germany surged by 30.8%, meaning it’s not the market that’s suffering – it’s in fact Tesla.

Why Is Tesla Loosing Ground In Germany?

Germany has been Tesla’s biggest European stronghold, but the tide seems to be turning. According to Germany’s road traffic agency, Tesla sold only 1,429 cars in February, marking a 76% decline, following a 60% drop in January. That’s two brutal months back-to-back, and some analysts are pointing fingers at Musk’s cozy relationship with U.S. President Donald Trump and his vocal support of far-right European parties like Germany’s AfD.

Germany recently underwent a political shift, with Friedrich Merz’s Christian Democrats (a center-right but not far-right party) winning the elections. The German public seems to be rejecting extreme political ideologies, and that might just be translating into their car choices. If Tesla’s numbers don’t improve in the coming months, it’ll be a pretty strong indicator that Musk’s politics are directly impacting the brand’s desirability.

Meanwhile, other EV manufacturers are having a better time in Europe. In the UK, despite a slight 1% dip in overall car sales, electric vehicles now account for one in four new cars sold. Chinese automakers are also making their move, with Chery outselling BYD in Britain for the first time. While Tesla struggles, the competition isn’t wasting any time expanding their market share.

Elon Musk Is Officially $121 Billion Poorer Than His Peak

Yes, Musk is still the richest person on the planet, but he’s taking some serious financial hits. Since his stock hit an all-time high of $480 per share in December, Tesla’s ongoing decline has wiped out $121 billion from his net worth, bringing it down to $342.8 billion, according to Forbes.

To put that into perspective, Musk has now lost more than the entire net worth of Steve Ballmer (the 10th richest person on Earth) or 1.3 times what Mukesh Ambani owns. That is big!

The sharp decline in Tesla shares is largely being attributed to Trump’s aggressive tariff policies, which have rattled investors, and of course, the massive dip in Tesla sales. Musk’s continued focus on Trump-era government initiatives like extreme budget cuts and regulatory rollbacks might have benefited Tesla in theory but so far, it’s just led to more chaos.

Interestingly, Tesla shares are still up 4.8% from Election Day, but that’s a far cry from the 91% rally they enjoyed before hitting their peak in December. Investors were betting big on Musk’s political influence benefiting Tesla, but with public sentiment turning against him, it looks like that gamble might not be paying off.

The Last Bit
Despite all this turbulence, some analysts still believe Tesla could bounce back. Optimists point to upcoming product launches, including the long-rumored affordable EV and potential advancements in self-driving tech. Others, however, aren’t convinced and believe Musk’s political distractions could keep Tesla stuck in this downward spiral.

Elon Musk’s political leanings now are not only affecting his Twitter mentions anymore, they are hitting Tesla’s bottom line hard!