Tesla’s stock fell 4.4% Tuesday, continuing a sharp decline as the company faces weak global sales, new tariffs, and a growing consumer boycott. Shares closed at $272.04, down from $480 in December, erasing $550 billion in investor wealth since Trump’s inauguration.
Tesla’s Chinese wholesale sales plunged 49% in February, while European sales dropped 45% in January, with France seeing an additional 26% decline in February. While some analysts cite production delays from a Model Y update, others attribute the decline to a “buyers’ strike” sparked by CEO Elon Musk’s political activism.
Musk’s $270 million donation to Trump’s campaign and his controversial statements have led to boycotts across the U.S. and Europe. Protesters have vandalized Tesla showrooms, and some former customers have placed “Elon went nuts” bumper stickers on their vehicles. Model 3 owner John Parnell canceled his Cybertruck order, saying, “He’s destroying the brand with his politics.”
Adding to Tesla’s challenges, Trump’s new 25% tariffs on Canadian and Mexican imports could increase production costs, further squeezing profits.
While some investors remain optimistic about Tesla’s AI and robotics ventures, others warn that Musk’s political engagement is alienating customers and damaging Tesla’s brand.
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