Tesla’s stock plunges by half; is Elon Musk’s EV party over?
Tesla’s stock has dropped by nearly half in three months, losing most of the gains it made following the U.S. election last year, when CEO Elon Musk helped fund the victory of President Donald Trump.
President Donald Trump said on social media Tuesday he is planning to buy a new Tesla as a “show of confidence and support for Elon Musk.”
The Tesla CEO in recent weeks has spearheaded the Trump administration’s efforts to slash government spending and workforce as the unofficial leader of the Department of Government Efficiency (DOGE).
The statement came hours after Tesla’s stock closed more than 15% lower Monday, continuing its plunge in recent weeks. The electric vehicle maker’s share prices have dropped more than 40% year-to-date.
“To Republicans, Conservatives, and all great Americans, Elon Musk is ‘putting it on the line’ in order to help our Nation, and he is doing a FANTASTIC JOB!” Trump said on Truth Social early Tuesday morning.
Trump blamed “radical” Democrats for trying to boycott Tesla in order to “attack and do harm to Elon, and everything he stands for.”
“In any event, I’m going to buy a brand new Tesla tomorrow morning as a show of confidence and support for Elon Musk, a truly great American,” Trump’s post continued. “Why should he be punished for putting his tremendous skills to work in order to help MAKE AMERICA GREAT AGAIN???” the post concluded.
Protests at Tesla dealerships and the company’s plunging stock
Protesters across the country have showed up at Tesla dealerships for a “Tesla Takedown,” a demonstration against Musk and his efforts to shrink the American government, the rightward shift of social media platform X under his leadership, and his influence on federal spending.
Cybertruck owners have shared displays of hostility from other motorists on a Facebook page, including vulgar notes left on their vehicles and obscene gestures directed at them from passing cars. Etsy offers several stickers for Tesla owners to affix to their bumpers with messages including “This Tesla does not endorse Elon Musk,” “Anti Elon Tesla Club” and “I bought this before Elon went crazy.”
Meanwhile, the company’s stock is in a freefall, with shares of the electric vehicle maker plunging 15% on Monday, the stock’s worst day on the market since September 2020, according to CNBC. The company last Friday wrapped up a seventh straight week of losses, its longest losing streak since debuting on the Nasdaq in 2010, CNBC reports.
Contributing: Phaedra Trethan, USA TODAY
Gabe Hauari is a national trending news reporter at USA TODAY. You can follow him on X @GabeHauari or email him at [email protected].