Tesla's $700bn 'Trump Bump' wiped out as stock plummets

Tesla’s stock has seen a dramatic plunge in 2025, wiping out the $700 billion surge it gained following the 2024 U.S. election. Shares of the electric vehicle giant, led by CEO Elon Musk, have tumbled 30.2% year-to-date, according to Yahoo Finance. The decline marks a record seven-week losing streak for Tesla, raising alarms on Wall Street.

This downturn is largely attributed to a backlash against Musk’s growing ties with former President Donald Trump and his endorsement of far-right politics. Recent sales figures reveal a global drop of up to 76%, with many consumers distancing themselves from the brand. Bloomberg reports that Tesla’s valuation has plummeted to pre-election levels, erasing the so-called “Trump bump.”

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In 2024, Musk’s decision to align closely with Trump seemed to pay off initially, earning him a role in the administration as a special government employee.

However, this association has now backfired spectacularly. In addition to consumer backlash, Trump-era policies, such as increased tariffs, have compounded Tesla’s challenges, leading to a 70% drop in profits last quarter. With mounting losses and a polarized customer base, the road ahead for Tesla appears increasingly uncertain.