Tesla shares fell 28% in February, marking the company’s steepest decline since December 2022. The drop continued into March, with another 3% loss on Monday, bringing Tesla’s market capitalization down to approximately $915 billion. The decline follows a disappointing fourth-quarter earnings report in January, where Tesla reported an 8% drop in automotive revenue and a 23% decline in operating income.
Falling average selling prices across its Model 3, Model Y, Model S, and Model X vehicles were cited as key reasons for the slump.Adding to the pressure, new tariffs imposed by President Donald Trump on Canadian and Mexican imports could impact Tesla’s supply chain, further straining profitability.
Political Fallout and Public Backlash
Tesla’s struggles extend beyond financial challenges, as CEO Elon Musk’s role in the White House fuels growing controversy. As head of the newly formed Department of Government Efficiency (DOGE), Musk has spearheaded aggressive federal workforce cuts and regulatory rollbacks while seeking new government contracts for his companies.
His political stance has also drawn criticism. Musk has faced backlash for promoting Germany’s far-right party AfD and for making controversial remarks about Ukraine’s President Volodymyr Zelenskyy, echoing Russian narratives. The resulting public sentiment has led to boycotts, vandalism, and a sharp decline in Tesla’s European sales. In Germany, Tesla registrations fell by 60% in January, while similar drops were recorded in France and Scandinavia.
Protests and Rising Anti-Tesla Sentiment
Anti-Tesla demonstrations have intensified across Europe and the U.S. In France, dozens of Tesla vehicles were reportedly set on fire in a suspected arson attack. In London, an ad comparing Tesla to Nazi symbolism went viral, while in the U.S., protests erupted outside Tesla showrooms. The growing “Tesla Takedown” movement is urging consumers to divest from the company, with support from celebrities like George Takei. Meanwhile, Cybertruck owners in the U.S. report facing hostility, with incidents ranging from rude gestures to harassment on the road.
Also Read: Tesla Cybertruck Blows Up Outside Trump Hotel, Las Vegas – 1 Killed
Challenges in Self-Driving Tech and Market Competition
Musk continues to emphasize Tesla’s future in autonomous driving and robotics, but the company is falling behind competitors. While Tesla’s CyberCab remains in development, companies like Waymo have already launched commercial robotaxi services, handling 200,000 trips per week. In China, automakers are offering self-driving features at lower costs, challenging Tesla’s premium pricing model.
On the latest earnings call, Musk claimed Tesla would launch “unsupervised Full Self-Driving as a paid service” in Austin by June, with expansion planned for other U.S. cities. However, with increasing competition and growing public dissent, Tesla faces an uphill battle to regain investor confidence and market stability. Stay tuned for updates on this developing story.