According to Reuters, the market value of Mask ‘ s electric car and energy company Tesla had fallen by 29.3 per cent in 2025, from $1.3 trillion in the month of the beginning of the year to $917 billion today, making it the largest global decline among major listed companies. At the beginning of the year, Tesla ranked eighth in global market value and has now slipped to tenth.
The data show that, on the last five trading days alone, the market value of Tesla has evaporated by some $232.2 billion, a five-day record of maximum market value loss, and that on Thursday (5 June), the single-day market value fell by $152 billion, breaking the $1 trillion mark for the first time since 9 May 2025. According to market analysts, this is mainly due to the decline in the demand for electric vehicles and the off-site factors in Mask.
Recently, Chief Executive Officer Elon Mask of Tesla, owing to his political differences, engaged in an open dispute with United States President Trump in social media. Following sharp criticism by Mask on its X platform of the Trump landmark tax and expenditure bill, Trump threatened to cut off government contracts with Mask-owned companies, causing market panic. Investors fear that the “scold war” between the two sides will result in Tesla losing policy support and affecting its profitability prospects.
The decline in the market value of Tesla coincided with increased competition in the global electric car market. In 2024, global growth in the volume of electric cars slowed and consumer sensitivity to prices increased. Despite the introduction of Model Y and FSD technology, Tesla failed to reverse market concerns about its growth prospects. In addition, the Fed ‘ s monetary policy adjustment and uncertainty about the interest rate on the national debt have further depressed the performance of the high-value valuation technology unit.
In May, Wall Street analyst Dan Ives predicted that with Cybercabs and FSD technology, the market value of Tesla could reach $2 trillion by 2026. The current market turmoil, however, suggests that Tesla needs to address policy risks, technological landings and profitability. Tesla is likely to be under greater pressure if the Government of Trump cuts electric car subsidies, or if the tension between Mask and the Government increases.