Published by Global Banking & Finance Review®
Posted on June 6, 2025
2 min readLast updated: January 23, 2026
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Tesla's market cap dropped by $380 billion in 2025, driven by declining EV demand and political controversies involving Elon Musk.
(Reuters) -Tesla is the worst-performing large-cap stock this year, thanks to declining electric vehicle demand, Chief Executive Elon Musk's political controversies over his ties to far-right groups, and now, his public feud with President Donald Trump.
Tesla shares slumped on Thursday, after Trump on social media threatened to cut off government contracts with Elon Musk's companies, following Musk's sharp criticism of the president's signature tax and spending bill on his X social media platform.
The market capitalization of Tesla Inc has fallen 29.3% to $917 billion so far this year, the biggest drop among big companies in the world.
Tesla, which ranked eighth globally in market capitalization at the beginning of the year, slipped to tenth as of June 5.
The company's shares rose in early trading on Friday, as investors took some comfort from White House aides scheduling a call with Musk to broker peace after a public feud with Trump.
Apple, which began the year as the world's most valuable company, has slipped to No. 3 this year, dragged down by weak demand in China, Trump's tariff threats, and slower progress in AI. Its market capitalization has declined over 20% this year, falling to $2.99 trillion as of Thursday.
Meanwhile, Microsoft has claimed the No. 1 spot in market capitalization, driven by surging demand for AI services, including its partnership with OpenAI and the integration of tools like Microsoft 365 Copilot.
(Reporting By Patturaja Murugaboopathy in Bengaluru; Editing by Amanda Cooper and David Evans)
Tesla's market capitalization has fallen 29.3% to $917 billion so far this year.
Tesla ranked eighth globally at the beginning of the year but has slipped to tenth as of June 5.
Declining electric vehicle demand and political controversies involving CEO Elon Musk have significantly impacted Tesla's stock performance.
Microsoft has claimed the No. 1 spot in market capitalization, driven by surging demand for AI services.
Tesla's shares rose in early trading on Friday after White House aides scheduled a call with Musk to broker peace following the public feud.
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