Electric car manufacturer Tesla started the week with a sharp decline on the stock market. The 15 percent loss in shares was recorded as the company’s worst performance in the last five years. With this decline, approximately $800 billion was erased from Tesla’s market value.

Historic collapse in Tesla shares

The company’s shares have fallen by more than 50 percent since the peak of $479.86 reached in December 2024, causing serious concern among investors. Tesla, which has closed the last seven trading days with losses, continues to experience its longest decline since its IPO in 2010.

More than one factor stands out in the sharp decline in shares. Uncertainties regarding US President Donald Trump’s trade policies are among the factors directly affecting Tesla’s cost structure. Possible new tariffs on important supply chain partners such as Canada and Mexico pose a risk of increasing the company’s production costs.

The political role of company CEO Elon Musk in Washington and his statements did not go unnoticed by investors. Musk’s relationship with the Trump administration is seen as one of the factors that negatively affects Tesla’s brand perception. His posts and harsh statements, especially on the social media platform X, are damaging the company’s public image.

While the electric and hybrid vehicle market is growing by 21 percent globally, Tesla’s market share continues to shrink. Despite this, the Model Y still maintains its title as the world’s best-selling electric vehicle. However, Chinese automaker Geely’s Geome model surpassed Tesla Model 3 in January and rose to second place in the global rankings.

How long Tesla’s decline will last and how the company will get out of this process are being closely followed by investors and industry analysts. So what do you think about this issue? You can share your views with us in the comments section below.