Tech analyst warns Musk vs Trump feud “putting major fear for Tesla investors on what is ahead”
In December, the company’s stock reached $479, but by the close of trading yesterday, it had fallen to $284.

The online feud between Musk and Trump on X yesterday caused Tesla’s stock to drop again. The two egos clashed and although things have cooled down a little overnight, those who know the two billionaires don’t expect either one to back down.
The bromance breakup is detrimental to both. Trump will have a very hard time passing his “big, beautiful” bill without support from Musk and several Republican senators. For Musk, the problems continue to grow after his DOGE shenanigans did not help his image and now he has both sides of the economic arena against him.
Tesla for sale. Never driven pic.twitter.com/L9W9GwjC8z
— Scott Barber (@thescottbarber) June 5, 2025
Elon Musk is actively seeking solutions to revitalize electric vehicle sales amid growing competition. Tesla reported a 9 percent drop in sales and a staggering 71 percent collapse in net income, raising concerns about its long-term viability.
Tesla’s tarnished image and diminishing stock value
Tesla’s brand image has been tarnished by Elon Musk’s political controversies, which are affecting how the company is perceived in key markets. The backlash against anything associated with Musk is becoming increasingly apparent.
Within the industry, Tesla’s market share has dropped to 43 percent, as it faces intense competition from both Chinese and American automakers. Adding to the pressure, U.S. tariffs threaten the competitiveness of Tesla’s battery production, making local manufacturing more crucial than ever.
And this challenge is at the heart of the issue. “Trade tensions exacerbated by tariffs imposed during the Trump administration are complicating matters,” analysts noted. As a result, it’s becoming difficult to make clear sales forecasts for the remainder of the year amid such uncertainty.
At the moment, there are no new Tesla models planned. Musk’s return to daily operations months later was seen as a major development, but the company is clearly under pressure. There are multiple issues to resolve, and it’s unclear how to address them effectively.
The first and foremost issue is public perception: surveys show that 60 percent of consumers hold an unfavorable opinion of Musk, which directly affects how people view the EV brand. This is particularly troubling in key markets like California and Europe, where Tesla was once highly popular—but is now facing organized backlash.
Despite rolling out a redesigned version of its most popular vehicle, the Model Y, Tesla has seen its sales nosedive in France by a whopping 67% — giving further credence to the world's richest Nazi, Elon Musk, destroying the Tesla brand w/his embrace of far-right fascism. $TSLA pic.twitter.com/pZfv4LD6YG
— Bill Madden (@maddenifico) June 2, 2025
In such a tense climate, rumors abound, although Tesla has denied reports that it was searching for a new CEO, a story originally published by The Wall Street Journal that gained more traction than expected. The company officially refuted the claim.
EV sales Europe, start of June:
— Ton Aarts (@ton_aarts) June 2, 2025
1. 2025 will be the worst year for Tesla ever
2. VW group EVs is outselling Tesla now nearly 4 : 1 pic.twitter.com/CqziiOOO81
Meanwhile, competitors are seizing the moment. Chinese manufacturers like BYD, American giants like General Motors, and Korean automakers such as Hyundai are launching new, innovative models. Tesla’s market share dropped to 43 percent in Q1, compared to 75 percent just three years ago. The coming months are expected to be critical—not just for Tesla, but for the entire EV market.
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