2025 has been a challenging year for Tesla (TSLA) shareholders, with the stock trading down 25% year-to-date. From CEO Elon Musk’s controversial stint in President Donald Trump’s administration to collapsing sales in Europe and growing pressure from Chinese competitors like BYD (BYDDY), the headwinds have been relentless. Although Musk’s exit from his government role brought momentary relief, the stock hasn’t found its footing yet.
This was especially evident during this past week, when tensions skyrocketed between President Trump and Musk and it was reported that sales of Tesla's electric vehicles (EVs) in China continued to fall in May and have now fallen for eight straight months. In May alone, deliveries of the Model 3 and Model Y, covering both domestic and export sales, slipped to 61,662 units, marking a 15% year-over-year decline. Even a modest 5.5% rise from April couldn’t mask the growing impact of fierce price wars in the world’s largest auto market.
