Due to Sales Decline, Tesla Loses $700 Billion in Market Value Within Months

March 10, 2025

• Tesla’s stock value declines again, resulting in total losses of $700 billion since last December.
• This comes amid declining investor confidence due to Musk’s involvement in politics and the company’s declining sales.
• The company had achieved exceptional performance and nearly doubled its value in the month following the US elections.

Expectations that Tesla would benefit from its CEO Elon Musk’s relationship with US President Donald Trump significantly boosted its stock value in the month following the US elections, making it one of the biggest gainers since the presidential election began on November 5, 2024.

However, these expectations were not enough to cover concerns about the company’s core business, namely electric vehicle sales. Its shares suffered a series of consecutive losses, the latest being a 4.6% drop in stock value, bringing total losses to $700 billion since the presidential election began.

This coincides with a series of events that shook investor confidence in the company in recent weeks, starting with the January report on the tech giant’s first sales decline in a decade in the fourth quarter of 2024, and ending with evidence of Tesla losing its dominant position in Europe and China.

Some investors also expressed concern that Musk’s involvement in politics would be a distraction from his position as CEO of the electric car giant, as stated by Adam Sarhan, founder of private investment firm 50 Park Investments: “The bet on Tesla’s stock rising due to Musk’s involvement in politics has not been successful so far. Investors who initially expected huge gains from Musk’s political involvement were overenthusiastic, and now a more rational mindset is prevailing.”

In addition to the above, the general market environment poses a challenge, as the speculative wave that drove Tesla’s stock value to record levels after the presidential election ended due to concerns about US trade policy and economic growth. The S&P 500 index fell by more than 7% compared to its highest levels, while the Nasdaq 100 index fell to correction level (more than 10% compared to its highest levels).

It is worth noting that in 2022, concerns about inflation and interest rates led to a 71% drop in Tesla’s stock value. As concerns subsided, technology company stocks rebounded, except for Tesla, which was suffering from declining demand for electric vehicles, before its stock value rose by 22% after the company’s financial report for the third quarter of 2024 in October.