Tesla Faces Market Challenges as Sales Decline and Stock Tumbles

Elon Musk's political role and unfulfilled promises contribute to shrinking sales and a 45% stock drop in 2025.

Tesla's global sales have declined significantly, with a 49% year-over-year drop in China and a 45% slump in Europe in early 2025.
Elon Musk's controversial political involvement, including his support for President Trump and leadership of the Department of Government Efficiency, has alienated some Tesla customers and investors.
Tesla's market share is shrinking as competitors like BYD, Ford, and GM introduce competitive electric vehicles with strong growth in sales.
The company's stock has fallen 45% from its December 2024 peak, with technical analysts suggesting it may be oversold but cautioning further potential declines.
Tesla's market valuation remains high, but analysts question its ability to meet the ambitious growth targets implied by its current stock price.