Tesla Stock Crash 2025: Elon Musk Faces Crisis Amid Controversy
3 min read
MARCH 12,2025
Tesla stock crash 2025 is shaking the financial markets as the electric vehicle giant’s stock plunged over 15% today, marking one of its worst trading days since going public in 2010. The drastic decline has erased more than 50% of Tesla’s value—approximately $800 billion—since its peak in mid-December. The crash follows a brief rally after Donald Trump’s election victory in November, but that momentum has now completely vanished.
Why Is Tesla Stock Dropping?
Several factors are at play, including broader market declines and recession fears. However, Tesla’s troubles are largely tied to CEO Elon Musk’s increasingly controversial public behavior and political associations.
Following Musk’s poll, shares of Tesla were down 5.5% to $1,155 at 5 a.m. ET Monday.
Musk, who has been deeply involved in the so-called Department of Government Efficiency (DOGE) task force firing government employees, has been openly supporting far-right figures and conspiracy theories on X (formerly Twitter). Since attending Trump’s inauguration and making a widely criticized Nazi-like salute, Tesla’s brand has taken a severe hit. Consumers and investors are distancing themselves, fueling the decline.
Musk’s X Activity and Tesla’s Decline
As Tesla’s stock sank, Musk flooded his X feed with Tesla-related posts, including a TikTok showcasing the Model Y and a fan-made clip of the upcoming Cybercab robotaxi. He also amplified endorsements from right-wing figures like Robby Starbuck and Laura Loomer.
However, Musk wasn’t just promoting Tesla—he was also pushing conspiracy theories. He accused Democratic donors like George Soros and LinkedIn co-founder Reid Hoffman of funding protests against Tesla through ActBlue, despite no evidence supporting the claim. Hoffman denied the accusation, calling Musk out for spreading falsehoods. In response, Musk made an unsubstantiated insinuation about Hoffman’s ties to Jeffrey Epstein, a smear tactic he’s used before.
Tesla Takedown Protest Movement and the Stock Crash
Public backlash has evolved into an organized movement called Tesla Takedown, which is leading protests at Tesla dealerships worldwide and urging people to boycott the brand. The group emerged in response to Musk’s extremist rhetoric and his efforts to dismantle government agencies.
Musk dismissed the protests as an operation funded by wealthy liberals, falsely linking peaceful demonstrators to violent incidents. Over the past week, some Tesla showrooms have been vandalized or attacked, with fires breaking out at multiple dealerships. Musk and his supporters baselessly blamed “Democratic NGOs,” despite authorities still investigating the incidents.
The Fallout: Tesla Stock Crash 2025 and Its Impact on the Brand
The stock crash is just one part of Tesla’s growing crisis. The company’s once-loyal customer base is shrinking, and its public image is tarnished. High-profile figures, including actress Alyssa Milano, have publicly distanced themselves from Tesla. When Milano traded her Tesla for a Volkswagen EV, Musk responded with a shocking post: “Alyssa Milano loves Hitler,” referencing Volkswagen’s historical ties to Nazi Germany.
Meanwhile, Tesla’s struggles are spilling over into Musk’s other ventures. X faced major outages today, which Musk attributed to a “massive cyberattack” without providing details. His erratic social media activity and conspiracy-mongering are fueling uncertainty about Tesla’s future.
The Bottom Line: Can Tesla Recover from the 2025 Stock Crash?
Tesla stock crash 2025 is shaping up to be one of the most significant financial downturns for the company. Between its financial decline, rising consumer backlash, and Musk’s increasingly polarizing behavior, the company’s future is uncertain. While Musk continues to promote Tesla to his followers, the reality on Wall Street tells a different story—one of a company in turmoil, struggling to regain investor confidence.
With mounting protests and a crumbling stock price, the question remains: Can Tesla recover, or is this the beginning of the end for Musk’s EV empire?
RELATED STORY:
About The Author
