Tesla’s stock has plummeted, making a signficant downturn for the electric vehicle gaint. On Monday, Tesla shares fell by over 15%, closing at 220.15euros, a level not seen since before the recent U.S. presidential election.
This decline has been a part of a broader trend, with Tesla’s stock losing ground for seven consecutive weeks, erasing gains made after Elon Musk’s endorsement of DonalD Trump’s presidential campaign.
The stock’s performance has been heavily influenced by investor concerns over weak sales figures, particularly in key markets like China and Europe. Additionally, Musk’s political engagements, including his role as head of the Department of Government Efficiency, have raised eyebrows among investors, who worry that his political involvement may detract from his focus on Tesla.
Tesla’s valuation remains a topic of debate among investors and analysts. Despite generating nearly all its revenue from electric vehicle sales, the company’s stock market valuation far exceeds that of traditional automotive and tech companies.
This discrepancy is largely due to investor expectations for future innovations, such as self-driving vehicles and humanoid robots, which Tesla has yet to deliver.
Elon Musk, the CEO of Tesla, has also seen a significant impact on his personal wealth. His net worth has dropped by over $100 billion in 2025, primarily due to Tesla’s declining stock price and concerns about his political activities. Musk’s wealth, now estimated at $330 billion, has decreased by nearly 25% since the start of the year.
Tesla stock is being closely watched by investors. The $215 mark is seen as a crucial area of support, while further declines could push the stock down to $165. On the other hand, resistance levels near $265 and $300 are important benchmarks for any potential recovery.
The recent decline in Tesla’s stock has also led to questions about whether the company’s valuation is sustainable. Despite its innovative potential, Tesla faces intense competition in the electric vehicle sector, and its stock price reflects a mix of current performance and future expectations.
As investors continue to reassess their positions, Tesla’s ability to deliver on its promises will be crucial in determining its stock’s trajectory.
Although Tesla’s stock decline and Elon Musk’s reduced net worth highlight the challenges facing the company and its CEO. As Tesla navigates a complex landscape of investor skepticism, political scrutiny, and market competition, its future success will depend on its ability to meet investor expectations and deliver on its innovative promises.