Tesla is the S&P 500's biggest loser so far Monday. But TSLA stock is also the worst performer on the S&P 500 so far in 2025, as CEO Elon Musk's political persona causes further damage to the EV giant's brand.
Tesla stock dived 15.4% to 222.15 on the stock market today, hitting their worst levels since Oct. 23, when Q3 earnings were released. Tesla had already round-tripped postelection gains. Shares are down 54.5% from the record high of 488.54 set on Dec. 18.
Tesla stock is down 45% so far in 2025 as of Monday's close. That's the worst performance of any S&P 500 stock, trumping Deckers, which is off just over 40%.
Shares fell nearly 3% in late trade.
Here are some of the reasons why Tesla stock is tumbling.
Tesla Deliveries
On the Q3 earnings call, Musk predicted delivery growth in 2024, and 20%-30% delivery growth in 2025. Deliveries ended up falling slightly last year, and Tesla now just says 2025 sales will rise vs. 2024. Some analysts see Tesla sales flat vs. last year or even declining.
Analysts have slashed 2025 EPS forecasts in the past several weeks, but may need to do more if deliveries fall short in Q1 and 2025.
Cybertruck Woes
On the Q3 earnings call, Tesla said the Cybertruck was profitable for the quarter. But it appears that was a one-time event, with Tesla selling the more-expensive Foundation Series with a high mix of the top-end Cyberbeast. With the Tesla shifting to a non-Foundation Series, and with sales largely for the dual-motor $79,990 variant, the EV giant is likely losing money on the Cybertruck again.
Elon Musk's Trump Ties
After Trump's election, investors bet that Musk's close ties would benefit Tesla. But his increasingly political social media posts, as well as his DOGE work with the Trump administration, are taking a toll on Tesla's brand in the U.S. and especially Europe.
Over the weekend, Musk got into new spats, calling Poland's foreign minister a "small man."
On Monday, Musk called Sen. Mark Kelly, D-Ariz., a "traitor" for Kelly's post saying "we can't give up on the Ukrainian people" after a visit to that country. Kelly was a fighter pilot during the Iraq War and later an astronaut.
Tesla Robotaxi Doubts
On the Q3 earnings call, Musk forecast Tesla would begin self-driving in Texas and California by mid-year. On the Q4 earnings call, he said Tesla would begin paid, unsupervised robotaxi rides in Austin this June, with a rapid expansion from there. But the unofficial FSD tracker suggest Tesla's Full Self-Driving is a long way from being unsupervised.
Slow Start To 2025, Will New Model Y Help?
Tesla deliveries have plunged to start 2025, at least in China and Europe. New Model Y deliveries are now taking place, which should provide some support for demand. But wait times for the new Model Y are low in the U.S. and China. It's available without any wait in much of America. That suggests little backlog that will keep sales high for a sustained period.
Keep in mind that Tesla stock is known for big swings up and down. Indeed, Tesla stock was one of the S&P 500's worst performers well into 2024 before skyrocketing late in the year. But many of the hoped-for drivers of that run-up have faded or never come to fruition.
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