Tesla’s stock took another hit today, plunging 6.2% in midday trading, as the electric vehicle giant grapples with a perfect storm of declining sales and a PR firestorm surrounding CEO Elon Musk. Investors are growing increasingly jittery after the company reported a 3% drop in global deliveries for Q1 2025 compared to the same period last year—the steepest decline since 2020.
The downturn comes as Musk faces mounting criticism over his handling of Tesla’s latest challenges. Industry analysts point to a combination of intensified competition from Chinese EV makers like BYD and a perceived slowdown in innovation at Tesla. “The Cybertruck was a bold move, but it’s not enough to keep the momentum going,” said Sarah Lin, an automotive analyst at GreenTech Insights. “Tesla’s rivals are catching up, and fast.” Tesla Shares Tumble Amid Musk
Adding fuel to the fire, Musk’s recent comments during a heated exchange on X have sparked outrage among some Tesla loyalists. Responding to a user’s complaint about delayed Model Y shipments, Musk quipped, “Patience is a virtue—try building a car yourself if you’re in such a rush.” The remark, seen as dismissive by many, triggered a wave of backlash, with hashtags like #MuskMeltdown and #TeslaTrouble trending across social platforms.
“Elon’s unfiltered style used to be a strength, but it’s starting to wear thin with customers and shareholders alike,” said Daniel Carter, a market strategist at Pinnacle Wealth. “Tesla’s brand has always been tied to Musk’s persona—when he stumbles, the stock feels it.”
The sales slump isn’t just a PR problem. Tesla’s once-dominant position in the EV market is under threat as competitors roll out cheaper, feature-packed alternatives. In Europe, Tesla’s Model 3 was outsold by Volkswagen’s ID.4 for the second consecutive quarter, while in the U.S., supply chain hiccups have delayed production of the refreshed Model S Plaid.
Musk has promised a turnaround, teasing a “game-changing” announcement at Tesla’s upcoming Battery Day event in April. However, skepticism is rife. “He’s got to deliver something concrete—not just hype,” Lin warned. “Investors want results, not another sci-fi pitch.”
For now, Tesla’s stock sits at its lowest point since November 2024, with shares trading at $189.43—down nearly 25% year-to-date. As the company navigates this rocky patch, all eyes are on Musk to see if he can steer the ship back on course—or if Tesla’s high-flying days are running out of charge.
