Tesla’s Stock on Thin Ice: 8.2% Drop as Musk Battles Politics and Sales Slowdown

Unknown Apr 02, 2026 850 Views

Tesla shares took a nosedive on Thursday, plummeting 8.2% as a wave of bad news shook investor confidence. The electric vehicle powerhouse has now seen its stock drop over 22% this year, fueled by growing worries about declining global sales, political unrest, and uncertain regulatory challenges....

Key Highlights:

On Thursday, Tesla’s stock fell 8.2%, deepening its year-to-date decline of more than 22%, which wiped billions off its market value.
This latest sell-off follows CEO Elon Musk’s increasing public criticism of President Trump’s tax policies, straining his ties with the administration and potentially putting Tesla’s political standing at risk.
Analysts are sounding alarms that Senate legislation aimed at California’s EV sales requirements could cut Tesla’s annual profits by $1.2 billion and lead to an additional $2 billion loss in regulatory credit sales.
Sales figures for May revealed significant drops in key markets: Germany (-36% year-over-year), Italy, and the UK, while deliveries from Tesla’s factory in China also fell by 15% last month.
The company is facing stiffer competition in both China and Europe, with its market share shrinking even as overall EV adoption continues to rise.
Investors are growing increasingly anxious about Musk’s rift with Trump and his exit from the Department of Government Efficiency advisory role, which could complicate Tesla’s efforts for cohesive autonomous driving regulations.
Despite the chaos, Tesla still holds the title of the world’s most valuable automaker, boasting a market cap close to $1 trillion—far surpassing Toyota’s $290 billion.
The ongoing volatility has also impacted Musk’s personal wealth, which has reportedly dropped by around $132 billion so far in 2025.

“This budget bill presents significant hurdles for Tesla with the end of EV credits, and Musk’s deteriorating relationship with Trump poses risks for Tesla and his other ventures,” noted Jed Ellerbroek from Argent Capital Management.

As Tesla gears up for its highly anticipated robotaxi launch in Texas, all eyes remain on Musk’s next political and business moves—and whether the company can reverse its sales slump in the months ahead.

Source: Reuters, CNBC, Investopedia, Financial Express, Economic Times

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