Tesla Named Worst-Performing Stock of 2025 as $380 Billion Wiped Off Value Amid Elon Musk-Donald Trump Feud

Tesla, once seen as a leader in the electric car industry, is having a very difficult year. In 2025, it has become the worst-performing large company on the stock market as per the Reuters report. This is mainly because demand for electric vehicles is falling, the company's Chief Executive Officer (CEO) Elon Musk is involved in political controversies with far-right groups and now, he is in a public argument with United States (US) President Donald Trump.

Tensions with Trump Hurt Tesla's Share Price

Tesla's stock took a sharp dive following the passage of Trump's 'One Big Beautiful Bill' by House Republicans. This sparked a heated exchange of threats and insults between Musk and Trump. As a result, Tesla's shares dropped more than 14 percent, wiping out about $152 billion in value within just a few hours.

Since the start of 2025, Tesla has lost over $380 billion in total market value, making it the worst-performing large-cap stock this year. Its market capitalisation has fallen by 29.3 per cent, down to $917 billion so far.

Tesla's Share Price is Sinking

Tesla's share price dropped sharply on Thursday after Trump posted on social media, saying he might stop government contracts with Musk's companies. This came after Musk criticised Trump's key tax and spending law on his platform X (previously known as Twitter). The argument caused concern among investors, who were already unsure about Musk's political involvement.

On Friday, Tesla shares rose slightly in early trading after news that White House staff had arranged a call with Musk to try to calm things down. This move gave some relief to investors who are hoping for more stability and less political drama around the company.

Tesla Market Value Drops in Global Company Rankings

So far this year, Tesla's market value has fallen by 29.3%, down to $917 billion. That is the biggest drop among the world's largest companies. At the start of the year, Tesla was ranked eighth globally in terms of value. As of 5 June, it has dropped to tenth place. This shows that investors are losing confidence in the company's future and leadership.

Apple Falls But Microsoft Takes the Lead

Tesla is not the only big tech name having a rough time. Apple, which was the world's most valuable company at the start of 2025, has now dropped to third place. Apple's value has fallen by over 20% this year, now standing at $2.99 trillion. This is due to lower sales in China, the risk of new tariffs from Trump, and slower progress in artificial intelligence (AI).

On the other hand, Microsoft has taken the top spot. The company's strong growth is driven by the rise of AI tools and its partnership with OpenAI. Products like Microsoft 365 Copilot have become popular in businesses, helping the company increase its value and move ahead of both Apple and Tesla.