Tesla Inc. (NASDAQ: TSLA) shares have taken a significant hit, dropping nearly 9% on Thursday, June 5, 2025, as tensions escalate between CEO Elon Musk and President Donald Trump. The stock closed at $297.36, down from an intraday high of $329.89, marking a substantial decline in investor confidence.
📉 Current Stock Performance
| Metric | Value |
|---|---|
| Current Price | $297.36 |
| Day’s High | $329.89 |
| Day’s Low | $295.88 |
| Opening Price | $322.21 |
| Volume | 154,375,889 |
| Year-to-Date Change | -26% |
Data as of June 5, 2025
🔍 Factors Contributing to the Decline
1. Musk-Trump Political Fallout
The public spat between Elon Musk and President Trump has intensified, with Musk criticizing Trump’s proposed tax bill, labeling it a “repugnant abomination.” This discord has unsettled investors, leading to a sell-off in Tesla shares.
2. Loss of EV Tax Credits
Trump’s “Big Beautiful Bill” proposes the rollback of Biden-era electric vehicle tax credits, potentially removing up to $7,500 in incentives for new EVs. Analysts warn this could reduce Tesla’s profits by over $3 billion, affecting both vehicle sales and energy products like Powerwall and Megapack.
3. Declining Sales and Market Share
Tesla’s sales have dropped 13% in Q1 2025, with profits down 71%. The company has also lost its global EV sales lead to China’s BYD. In Germany, sales fell 36% year-over-year in May.
4. Investor Sentiment and Insider Selling
The put-call ratio for Tesla options has reached its highest since April, indicating a bearish outlook among investors. Additionally, two company insiders sold a combined $200 million in Tesla stock, further shaking investor confidence.
📊 Future Outlook
Despite current challenges, some analysts remain optimistic about Tesla’s long-term prospects. Forecasts suggest the stock could rebound to $358.61 by July 2025, with potential gains of up to 132.95% by November.
🧭 Conclusion
Tesla’s recent stock decline underscores the impact of political dynamics and market sentiment on investor confidence. While the company faces immediate challenges, its innovative ventures in AI and autonomous vehicles may offer long-term growth opportunities. Investors should monitor developments closely as the situation evolves.
For a detailed analysis of Tesla’s stock performance, watch the following video:
