Tesla Faces Mounting Challenges as Sales and Stock Plummet

Declining sales, political polarization, and policy risks threaten Tesla's dominance in the EV market.

Tesla's stock has dropped nearly 50% since December 2024, losing over $500 billion in market value.
Global sales have sharply declined, including a 49% drop in Europe during the first two months of 2025.
Elon Musk's role in the Trump administration has alienated liberal consumers, with trade-ins of Tesla vehicles reaching record levels.
Conservative support for Tesla, including endorsements from Donald Trump, has not translated into significant new sales.
Potential threats to EV tax credits under the Republican-led legislature could further impact Tesla's pricing and competitiveness.