- Tesla stock drops 50%, erasing $700B in value since December 2024.
- Sales slump in Europe and China, with 2025 deliveries predicted to fall 5%.
- Elon Musk’s net worth drops $100B+ amid Tesla’s decline and boycott concerns.
Sandton, Johannesburg - Tesla’s stock has been experiencing a significant decline recently. As of March 12, 2025, reports indicate that Tesla shares have dropped sharply, with a notable single-day decline of over 13% on March 10, wiping out more than $700 billion in market value from its mid-December peak. The stock has fallen over 50% from that high, hitting its lowest point since before the U.S. election on November 5, 2024. This follows a seven-week losing streak, the longest in Tesla’s 15-year history as a public company, with the stock closing at $270.48 by the end of last week. The decline has been steep enough to erase most of the post-election rally gains, which had initially pushed the stock to nearly $480 in December 2024. Analysts from major firms like Bank of America, Baird, and Goldman Sachs have cut their price targets, citing concerns over sales and broader market dynamics.
What’s Happening to Actual Sales Performance?
Tesla’s sales performance in 2025 has been weakening, particularly in key markets. For 2024, Tesla reported its first annual sales decline, delivering about 1.8 million vehicles, down 1.1% from the previous year. In the fourth quarter of 2024, deliveries were 495,570 units, which missed some analyst expectations. Moving into 2025, January data shows sharp drops in specific regions: European sales fell 45% year-over-year, with Germany down 60%, France down 63%, and Norway down 38%. In China, Tesla’s second-largest market, sales have also trended downward, though exact figures for early 2025 are less detailed. Globally, UBS analysts predict a 5% decline in 2025 deliveries, contrasting with earlier consensus forecasts of 12% growth. This comes amid increased competition from rivals like BYD, which sold 4.2 million units (including hybrids) in 2024, doubling Tesla’s volume. Tesla has cut prices and offered incentives to boost demand, but these measures have squeezed profits—operating income fell 23% in Q4 2024. Production shifts, like the Model Y changeover, may also be constraining supply temporarily, but the overarching trend points to softening demand rather than just supply issues.
What’s Happening to Elon Musk’s Net Worth?
Elon Musk’s net worth is closely tied to Tesla’s stock price since he owns about 13% of the company (plus a potential 9% equity bonus pending appeal). As Tesla’s stock has slid, his wealth has taken a hit. From a peak of $486 billion in December 2024, his net worth has dropped significantly. By early March 2025, estimates suggest losses ranging from $100 billion to $145 billion, with Forbes reporting a decline to around $340 billion as of March 10. A single-day drop on March 10 shaved off billions more, with earlier reports noting a $15 billion hit on February 25 alone. Despite this, Musk remains the world’s richest person, still ahead of Mark Zuckerberg by over $120 billion. The volatility reflects Tesla’s stock swings, amplified by Musk’s high-profile role and the market’s reaction to Tesla’s performance.
Boycott is Real
There’s evidence of a boycott sentiment, but its actual impact on Tesla’s stock and sales is debated and hard to quantify precisely. Public backlash against Musk’s political involvement—particularly his role as a Trump adviser and head of the Department of Government Efficiency (DOGE)—has grown. Protests have occurred at over 50 Tesla showrooms in the U.S., and high-profile figures like Sheryl Crow have publicly ditched their Teslas. In Europe, Musk’s support for far-right parties like Germany’s Alternative für Deutschland has coincided with steep sales drops, suggesting a consumer backlash. Analysts from Oppenheimer, Stifel, and Wedbush have noted that Musk’s “political activity risks consumer backlash” and could be a “headwind to sales,” especially in liberal-leaning markets like California and parts of Europe. However, other factors—like competition from BYD, aging models (e.g., Model 3 and Y), slowing EV demand, and Trump’s tariffs affecting Tesla’s supply chain—also weigh heavily on sales and stock performance. Without consumer surveys tying sales drops directly to Musk’s politics, the boycott’s scale remains anecdotal but plausible as a contributing factor.
Putting It Together
Tesla’s stock is indeed tanking, down over 50% from its December peak, driven by disappointing sales and broader market concerns. Sales are faltering, with declines in Europe and China signaling real demand issues, not just supply constraints. Musk’s net worth has shrunk by over $100 billion as a result, though he’s still the wealthiest person globally. The boycott appears real in terms of sentiment—protests, social media trends, and analyst warnings support its existence—but its precise impact is muddied by competing factors like competition and economic headwinds. It’s likely amplifying an already tough situation for Tesla rather than being the sole cause. The company’s future hinges on whether new products (e.g., affordable EVs, robotaxis) can reverse these trends, but for now, the combination of market forces and Musk’s polarizing persona is keeping Tesla under pressure.
- Equity Axis News
