Tesla Stock Drops 51% as Violent Attacks on Dealerships Spike—Is Musk’s Politics to Blame?
Tesla stock has actually plummeted about 51% from its all-time highs right now as violent attacks on dealerships continue to increase and political controversy surrounds Elon Musk. The dramatic stock market volatility we’re seeing follows Musk’s rather prominent role in the Trump administration, where he’s currently overseeing the Department of Government Efficiency.
Tesla Stock Tumbles: Musk’s Politics, Vandalism & Market Impact
At the time of writing, Tesla stock has experienced a pretty dramatic reversal of fortune. After doubling in value following the election, shares have now unfortunately shed all those gains, with a steep 44% drop in 2025 alone, which is significantly underperforming the broader market indexes.
Violent Attacks Target Tesla Properties
This level of violence is insane and deeply wrong.
Tesla just makes electric cars and has done nothing to deserve these evil attacks. https://t.co/Fh1rcfsJPh
A concerning wave of violence against Tesla dealerships has emerged across the country in recent weeks. Several Cybertrucks have been set ablaze and multiple showrooms attacked with bullets and also Molotov cocktails.
Elon Musk wrote on X:
“This level of violence is insane and deeply wrong. Tesla just makes electric cars and has done nothing to deserve these evil attacks.”
Attorney General Pam Bondi stated:
“If you’re going to touch a Tesla, go to a dealership, do anything, you better watch out because we’re coming after you.”
Musk’s Political Controversy Impacts Tesla Stock
Tesla was once celebrated by environmentalists and progressives, but Musk’s political alignment has essentially transformed its public image. After spending an estimated $250 million or so on Trump’s campaign, Tesla stock has become something of a target for those opposed to the administration.
Randy Blazak, a sociologist who studies political violence, noted:
“Tesla is an easy target. They’re rolling down our streets. They have dealerships in our neighborhoods.”
Market Factors Driving Price Drop
New York University’s Aswath Damodaran, who is known as the “” currently forecasts a Tesla stock price of around $148, which indicates a further potential decline of about 38%. Beyond just politics, he also points to softening EV demand and increasing competition from BYD.
Tesla stock faces additional pressure as well since the company’s EV revenue declined by approximately 6% year-over-year in 2024.
Long-term investors remain somewhat focused on Tesla’s AI potential, with Morgan Stanley projecting annual robotaxi profits of possibly $120 billion by 2040.
As Tesla stock continues to navigate this rather volatile period, the intersection of politics, market competition, and technological ambition seems to drive extraordinary price movements for what is perhaps one of Wall Street’s most polarizing stocks these days.
