Tesla's stock has experienced a significant downturn, plummeting over 14% on June 5, 2025, resulting in a loss of approximately $153 billion in market capitalization. This sharp decline follows a public feud between CEO Elon Musk and President Donald Trump, which has raised concerns among investors and analysts alike.
📉 Key Factors Behind the Stock Decline
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Public Feud with President Trump: The conflict escalated after Musk criticized Trump's proposed "One Big, Beautiful Bill," which includes cuts to electric vehicle subsidies. Trump responded by threatening to cancel federal contracts with Musk's companies, including Tesla and SpaceX.
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Political Backlash: Musk's involvement in the Trump administration, particularly his role in the Department of Government Efficiency, has led to protests and boycotts under the "Tesla Takedown" movement.
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Declining Sales and Market Share: Tesla has faced a 45% drop in sales in Europe and a 49% decline in China, while local competitors like BYD have gained market share.
Analyst Downgrades: UBS analysts have lowered Tesla's Q1 2025 delivery forecast by 16%, citing softer demand for models like the Model 3 and Model Y.
📊 Current Stock Snapshot
As of June 6, 2025, Tesla's stock is trading at $284.70, reflecting a 14.2% decline from the previous close. The intraday high was $329.89, with a low of $273.60. The trading volume reached approximately 292.8 million shares.
🔮 What’s Next for Tesla?
The ongoing tensions between Musk and Trump, coupled with declining sales and market share, suggest that Tesla may face continued volatility. Investors are advised to monitor developments closely, as the company's future performance will depend on resolving political conflicts, addressing market competition, and restoring consumer confidence.
For more detailed analyses and updates, consider following financial news outlets and market analysts who specialize in the electric vehicle sector.
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