Electric vehicle (EV) king Tesla (TSLA) staged a late 2024 rally as CEO Elon Musk solidified himself as one of President Donald Trump’s key allies, securing a leadership role in the newly created Department of Government Efficiency. While the company may have kicked off 2025 on uncertain footing, with disappointing Q4 deliveries and uninspiring quarterly earnings results shaking investor confidence, hopes of a business-friendly regulatory landscape have kept bullish bets alive.
With the prospect of reduced oversight and pro-business policies on the horizon, many investors are still wagering that Tesla could emerge as one of the biggest corporate beneficiaries of the new political climate. However, Musk’s deepening involvement in politics is now proving to be a double-edged sword, casting a shadow over Tesla’s European dominance. The EV stock appears to be struggling once again as the company is facing a sharp decline in market share across Sweden and Norway, as fresh January car registration data paints a concerning picture.
