Tesla woes: Company loses $152B in value amid sales collapse and CEO fallout with Trump

Tesla is facing a perfect storm. A 36% drop in UK car sales, a devastating 14% stock plunge, and a high-profile political meltdown between CEO Elon Musk and President Donald Trump have combined to deal the electric carmaker its hardest hit in years.

The turmoil comes just days after Musk’s official exit from his advisory role with the Trump administration, where he had served the maximum 130-day term as a “special government employee.” What began as a dispute over Trump’s signature spending bill exploded into a public brawl, with both men trading personal insults online.

“The bill is an abomination,” Musk declared on X, urging followers to “kill the bill.” Trump fired back, calling Musk “CRAZY” and threatening to sever government ties and subsidies to Musk’s companies. In response, Musk threatened to withdraw SpaceX's support from NASA, only to retract the threat later that night.

The fallout was swift. Tesla shares crashed 14%, erasing $152 billion in market value, the steepest single-day drop in Tesla’s history. Musk’s net worth dropped by $34 billion, according to Bloomberg’s Billionaires Index.

UK sales collapse deepens the crisis

As if the political drama weren’t enough, Tesla’s commercial performance is faltering in one of its key overseas markets.

According to the Society of Motor Manufacturers and Traders (SMMT), Tesla sold just 2,016 vehicles in the UK in May, a steep drop from 3,152 a year prior. That’s a 36% year-on-year decline, and part of a broader trend: Tesla’s UK sales are down 7.8% year-to-date.

Meanwhile, rival electric carmakers are surging ahead. China’s BYD posted 407% year-on-year growth in May, overtaking Tesla in the UK and expanding its lead. Volkswagen, Ford, and Peugeot also logged sharp increases in electric vehicle (EV) sales.

“Tesla is in danger of losing its crown as the UK’s top EV seller to Volkswagen,” said Ben Walker of the thinktank New AutoMotive. “Musk’s political antics aren’t helping.”

Fallout beyond the markets

Tesla’s decline is no longer just about supply chains or interest rates. Analysts say Musk’s controversial persona and his increasing alignment with far-right US politics are pushing away global consumers.

“People aren’t just buying cars anymore, they’re buying brands,” said one UK auto industry analyst. “And right now, Elon Musk is not a brand many want in their driveway.”

With Tesla now out of the trillion-dollar club, its CEO locked in a public spat with the President, and global rivals gaining ground, the big question right now is: Can Tesla right the ship, or is the Musk factor finally turning from asset to liability?