Tesla’s stock has been on a downward spiral, and there’s no one to blame but Elon Musk himself. Once seen as an untouchable visionary, Musk has spent the past few months acting more like an entitled juvenile than the leader of a trillion-dollar company. His arrogance, political entanglements, and erratic behavior are not only damaging Tesla’s brand but also erasing billions in shareholder value.
Over the past six months, Tesla’s stock has plunged from a high of $479.86 on December 17, 2024, to $285.24 as of February 27, 2025—a staggering decline. This downward trajectory has wiped out approximately $570 billion in market value, bringing Tesla’s valuation below the $1 trillion mark (Barron’s).
A CEO Too Distracted to Lead
Instead of focusing on Tesla, Musk has been busy playing political kingmaker and indulging in reckless social media antics. His leadership of X (formerly Twitter) has turned into a sideshow, and his involvement in the Trump administration’s Department of Government Efficiency (DOGE) is drawing widespread scrutiny. The situation hit a boiling point when Musk made a gesture reminiscent of a Nazi salute during President Donald Trump’s inauguration—an act that outraged many and further alienated Tesla’s customer base (Welt).
Musk’s erratic behavior isn’t just a PR disaster—it’s having a tangible impact on Tesla’s sales. In January 2025, European electric vehicle registrations for Tesla nosedived by 45% compared to the previous year, with only 9,945 registrations reported (Investopedia). Meanwhile, in the U.S., 32% of potential buyers now say they would not consider a Tesla, up from 27% last year (Axios).
Investors Are Losing Patience
Wall Street is waking up to the fact that Musk might be more liability than asset. Tesla’s overvaluation has long relied on the perception that Musk is a once-in-a-generation genius. But as sales decline, competition in the EV market intensifies, and Musk continues to alienate key demographics, that illusion is crumbling fast.
Ross Gerber, a prominent Tesla shareholder, has warned that 2025 will be a rough year for the company, citing Musk’s political distractions and skepticism about Tesla’s overambitious targets (Business Insider). Investors who once saw Tesla as an unstoppable force are now realizing that Musk’s recklessness has made it incredibly vulnerable.
The Bottom Line: Musk Needs to Step Up or Step Aside
Tesla’s decline isn’t about market trends or economic conditions—it’s about leadership. Musk has become more focused on stoking controversy and wielding influence than on running the company that made him a household name. His unchecked arrogance and political ambitions have turned Tesla into a risky bet rather than the EV juggernaut it once was.
If Musk doesn’t change course—and fast—Tesla’s stock could sink even further. Investors and customers alike are losing confidence, and unless he reins in his ego and refocuses on the company, the downfall of Tesla may be written in history as a case study in self-inflicted destruction.
