Tesla Shares Tank, Worst Drop In Last 5 Years

Elon Musk has been in the news for a while now, and mostly for not-so-good reasons. After joining the Trump Administration, Musk’s automotive firm, Tesla, has seen its shares drop for seven consecutive weeks, wrapping up last Friday. 

With the shares dropping by 15% on Monday, Tesla marked its worst day on the market since September 2020.

Stocks Plunges

Ever since debuting on the Nasdaq in 2010, yesterday’s market not only marked the stocks’s seventh worst day on the market but also marked the longest streak of Tesla shares plunging as it continued to do so for seven consecutive weeks.

After peaking at $479.86 on December 17, Tesla’s stock has been on a steady decline, dropping nearly 50% to its current price of $222.15. This massive drop erased approximately $800 billion from the company’s market value, causing Tesla to lose its trillion-dollar status last month. 

The steep sell-off has also taken a toll on Elon Musk’s net worth, which has fallen by more than $100 billion, or about 25%, since mid-December.

Apart from troubles with automotive firm, Musk’s other businesses, including social media platform X and aerospace and defence company SpaceX, also suffered some setbacks. On Monday, the platform X suffered multiple outages throughout the day while Starship rockets during test flights saw two explosions, which are currently being investigated by SpaceX. 

DOGE, Tariffs, And Musk’s Antics

Ever since Elon Musk joined the Trump Administration as the Chief of the Department of Government Efficiency (DOGE) on January 20, 2025, Tesla’s stock has been on a downward trend. This is in contrast to the initial market reaction after Trump won the election in November 2024, when Tesla’s stock surged significantly.

Many have suggested that the reason for such a drop in shares is the Trump Administration’s plans regarding tariffs, especially on Canada and Mexico, which are key markets for automotive suppliers. 

Apart from this, Elon Musk’s antics on X and his meddling in the politics of other nations have received widespread scrutiny. Musk support for far right parties in other nations like Argentina and Germany and with him recently being alleged for doing Nazi salutes have had many existing customers and public boycott Tesla products. Many of Tesla's facilities across the U.S. have been the targets of protests and vandalism.

Musk Responds

Musk took to X to reply to a post that noted Tesla's biggest single-day stop drops in history. He replied, “It will be fine long-term”.

He also sat down for an interview with Fox Business host Larry Kudlow, where Musk was asked how he was running his other businesses.

Musk replied, ”With great difficulty," and chuckled.

"Yeah, I mean," Musk sighed.

"I'm just here trying to make government more efficient, eliminate waste and fraud, and so far we're making good progress, actually," he said. “Our savings at this point exceed $4 billion a day. So it's very significant.”

Elon Musk is currently working as the Chief of DOGE, which has already let go of 10,000 federal employees in its effort to save a trillion dollars in government spending.

Also Read:

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• DOD Directs Employees To Ignore Elon Musk’s Federal Productivity Survey
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