Tesla sheds $380 billion in value, posting largest market loss of 2025
Tesla has lost $380 billion in market value in 2025, the steepest decline among the world’s largest publicly traded companies.
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Tesla has emerged as the worst-performing large-cap stock of 2025, battered by weakening demand for electric vehicles, escalating political entanglements involving its chief executive, Elon Musk, and a very public dispute with US President Donald J. Trump.
Shares of Tesla fell sharply on Thursday following a series of posts on Trump’s social media platform, in which the Republican presidential candidate threatened to sever federal contracts with Musk-led companies. The remarks came in response to Musk’s pointed criticism of the Trump-backed tax and spending legislation, shared on X, the social network he owns.
Tesla’s market capitalization has declined by 29.3 percent this year, erasing more than $380 billion in value and reducing its standing among the world’s most valuable companies. Once ranked eighth globally, Tesla now sits at tenth as of June 5. Shares rebounded slightly in early trading Friday after reports surfaced that White House officials had scheduled a call with Musk in a bid to defuse tensions with Trump.
The downturn comes amid broader turbulence in the tech and auto sectors. Apple, which entered the year as the world’s most valuable company, has fallen to third place, beset by sluggish sales in China, renewed trade tensions, and concerns over its pace in artificial intelligence development. Its market value has dropped more than 20 percent this year, falling to $2.99 trillion.
Microsoft has capitalized on the shift. Bolstered by robust enterprise demand for artificial intelligence services and its deepening integration with OpenAI, Microsoft now holds the top spot in global market capitalization.
