Tesla (TSLA) has been battered this year, with its stock price tumbling under the weight of intensifying competition, sluggish international sales, and, of course, CEO Elon Musk’s growing political entanglements. Ironically, Musk’s close ties to President Donald Trump initially boosted Tesla shares in late 2024, as investors wagered that Trump’s pro-business policies would lift the company’s prospects and Musk’s other privately held ventures.
However, investors didn’t seem to expect that Musk’s role heading up the Department of Government Efficiency (DOGE) would be so controversial. The backlash has been brutal, with Tesla showrooms turning into protest sites. Even Trump’s recent high-profile Tesla car purchase failed to stop the bleeding, as the once-dominant electric vehicle (EV) maker sank to the bottom of the elite “Magnificent Seven” group this year.
