Tesla is facing a significant crisis, losing nearly half of its market value over a short period due to declining sales, brand perception changes, and political influence.
Tesla in Crisis
Tesla, already struggling in Europe, is in free fall. In less than six months, the company saw its valuation drop from $1.54 trillion to $777 billion. According to JPMorgan, such a disaster is unprecedented in automotive history. The figures speak for themselves: a 49% decline in market capitalization over six months; 8% lower delivery estimates for the first quarter of 2025 compared to 2024; and a 45% drop in new orders in Europe in January. Consumer perception changes, making this commercial decline worse, with some customers even trying to hide the logo on their vehicles. Jamie Dimon, CEO of JPMorgan, notes that while Musk's innovations are world-changing, the market demands concrete results.
Stock Market and Musk’s Strategy
Tesla's fall in the stock market is not only due to weak sales. Investors are worried about Elon Musk's strategic decisions, accused of dividing his attention among his projects, including SpaceX and X. Another worrying aspect is his involvement in the Department of Government Efficiency under Trump. Analysts point out three major risks: the impact of Musk’s political choices on Tesla’s perception, the likely reduction of tax credits for electric cars, and internal management issues due to the CEO’s divided focus. While observers remain skeptical of the current situation, Tesla's new initiatives like the robotaxi and the Optimus robot may change the scenario in the future.
Trump and Tesla: A Controversial Alliance
Donald Trump’s shadow looms over Tesla. Initially seen as an asset, Musk’s proximity to the former president has become divisive. JPMorgan analysts note that Musk's governmental involvement could harm Tesla more than help it. In the United States, protests targeted Tesla dealerships, some of which were vandalized. Trump responded by announcing that the perpetrators would be treated as domestic terrorists. The economic situation is also delicate, as Tesla could be the first victim of the end of federal subsidies for electric vehicles, a measure strongly backed by Trump. If these aids disappear, Tesla will lose a crucial lever to attract new buyers. Yet, even amid the crisis, the company continues to leverage its bitcoin holdings, having earned $600 million in the fourth quarter of 2024.
Tesla’s future remains uncertain due to political factors and market fluctuations. If current trends continue, the company will need to find solutions to stabilize the situation.
