Key Takeaways
- Tesla’s stock plunged 28% in February, wiping out $103 billion from Elon Musk’s net worth.
- U.S. and European activists launched "Tesla Takedown," urging boycotts over Musk’s political decisions.
- Tesla fell short of its Q4 earnings expectations as rivals like Waymo expanded autonomous vehicle offerings.
Tesla is facing its worst month in over two years, as stock prices plunged 28% in February amid growing backlash against CEO Elon Musk’s political involvement.
The sharp decline — erasing $103 billion from Musk’s net worth — coincided with his first full month as a member of President Donald Trump’s administration.
Tesla stock dropping faster than pieces of spaceX rockets. pic.twitter.com/WOoPFLjBDd
— Joe G (@EastEndJoe) March 7, 2025
The electric vehicle giant struggled on multiple fronts, including a drop in European sales, fears over Trump’s trade policies, and increasing public protests against Musk.
According to a report by Reuters, Tesla’s car sales in Germany, a key EV market, fell 76% in February, while French demand dropped by 26%.
Meanwhile, activists in both Europe and the U.S. have launched “Tesla Takedown,” a movement urging consumers to boycott the brand in response to Musk’s political decisions, including mass federal layoffs and cuts to humanitarian aid.
Our government has been seized by a racist billionaire fascist. We all owe it to each other to take Musk down. Today we occupied and blockaded the Tesla showroom in Manhattan with hundreds of New Yorkers. NYPD responded with violence. pic.twitter.com/1oQtutnmFF
— Planet Over Profit (@pop4climate) March 8, 2025
Investors are also wary of his increasing influence in Washington, citing concerns over his ties to Germany's far-right and support for Trump’s economic policies, which could trigger harmful EV tariffs.
Tesla Faces Growing Uncertainty
Beyond the political fallout, Tesla is also facing financial and competitive pressures.
The company missed Wall Street’s expectations in Q4, reporting an 8% decline in automotive revenue year-over-year.
Meanwhile, rivals like Waymo are ramping up their autonomous vehicle offerings, threatening Tesla’s dominance in the space.
We’re taking autonomous driving to new heights. Now, the Waymo Driver can navigate 32% street grades—perfect for accessing some of SF's steepest hills. ⛰️🌉 pic.twitter.com/f28XjtFoAV
— Waymo (@Waymo) March 7, 2025
With protests intensifying and market confidence wavering, Tesla’s future looks increasingly uncertain.
Tesla’s reputation is deeply tied to Musk, making the company vulnerable to shifts in public opinion and political controversies.
The backlash could impact long-term brand loyalty and customer retention.
Meanwhile, OpenAI rejected Musk’s $97.4 billion takeover bid, reaffirming its independence in the AI sector.
