Tesla Stock Drops 23% in 2025 as Protests and Market Uncertainty Mount

Elon Musk's government role and protests against federal job cuts fuel investor concerns, while analysts debate Tesla's long-term growth potential.

Tesla's stock has fallen 22.75% in 2025, erasing $354 billion in market value, with its market cap dropping to $942.38 billion from $1.3 trillion at the end of 2024.
Protests erupted nationwide, including arrests outside a New York Tesla dealership, targeting Elon Musk for his role in federal workforce cuts as head of the Department of Government Efficiency under President Trump.
Wedbush analyst Dan Ives maintains a bullish outlook, projecting a $550 share price and a potential $2 trillion valuation driven by AI, autonomous driving, and a planned lower-cost EV model.
Elon Musk remains optimistic about Tesla's future, predicting a potential 1,000% stock increase over five years with flawless execution despite ongoing controversies.
Technical analysis suggests short-term bearish momentum, but Tesla's stock is trading above its 200-day moving average, indicating long-term support near $278.76.