Tesla’s stock has plummeted in 2025 due to collapsing sales, leadership distractions, and skepticism about its AI-driven growth narrative. Shares fell on March 11, erasing all post-election gains and marking a since December 2023. Here’s why investors are losing confidence:
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– Germany saw a in deliveries (lowest since 2021).
– China sales fell in February, while rival BYD surged .
– Norway, Denmark, and Sweden reported .
– : Aggressive discounts hurt profit margins, with automotive gross margins falling to .
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– : Musk’s role in Trump’s cost-cutting “DOGE” initiative has raised concerns he’s spread too thin. Analysts note he’s spending “more time on DOGE than Tesla”.
– : Musk’s polarizing political statements alienated environmentally conscious buyers, leading to boycotts and even a Tesla charger arson in Massachusetts.
– : Shareholders demand a return to operational focus, with some calling for Musk to step down as CEO.
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Musk claims Tesla’s AI will make it the “most valuable company on Earth,” but evidence suggests otherwise:
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– Drivers reportedly disable FSD to multitask (e.g., texting), undermining safety claims.
– Competitors like GM and Ford are gaining ground in EV autonomy without Tesla’s brand baggage.
– : While Tesla collects vast video data from its fleet, analysts argue it hasn’t translated into a decisive edge. BYD’s shows execution matters more than data hoarding.
– : Optimus robots and robotaxis remain unproven, with no near-term revenue impact.
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– : The “Magnificent Seven” stocks, including Tesla, lost $266 billion in combined billionaire wealth in 2025.
– : Tariffs and shifting trade dynamics hurt Tesla’s global supply chain.
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Analysts are split:
– see a buying opportunity, citing Tesla’s and AI potential.
– warn of further declines, noting Tesla’s to $2.85 amid margin erosion.
While Musk insists Tesla will “be fine,” the company must address collapsing demand, leadership distractions, and unfulfilled AI promises to regain Wall Street’s trust.
