The market value of Tesla has decreased by $380 billion throughout 2025 which makes it the worst-performing major stock of this year because of declining EV sales and Elon Musk’s public dispute with President Trump.
The electric vehicle manufacturer experienced another share price decline on Thursday because Trump announced his intention to cut federal business contracts with Musk’s companies including Tesla and SpaceX after Musk criticized the president’s tax and spending bill. Tesla’s market capitalization decreased by 29.3% during January to reach $917 billion which was its highest point at the beginning of the year when it ranked as the eighth-largest company worldwide. It has now slipped to tenth place.
The White House officials’ planned meeting with Musk to resolve their tensions caused Tesla shares to experience a minor increase on Friday. Apple experienced a decline to third position this year because Chinese market weakness combined with Trump’s trade policy concerns.
The company Microsoft has taken the lead in global market capitalization through its successful AI service sales and OpenAI partnership. The decline of Tesla demonstrates how valuable companies remain exposed to political risks and changing market preferences in a worldwide competitive market.
The situation presents a dramatic change in Tesla’s fortunes because the company faces both electric vehicle market changes and intensifying conflicts between its outspoken CEO and Washington officials.
