How much has Tesla lost in 2025 amid Elon Musk’s political ambitions and public spat with Donald Trump

The public feud between US President Donald Trump and Tesla CEO Elon Musk, beginning with government policy criticism, greatly influenced the leading EV manufacturer globally. During the ongoing conflict, Tesla’s market capitalisation (market cap) decreased by $150 billion, and its stock fell 14% in one day.

On June 6, 2025, Tesla’s market capitalisation was $917 billion, representing a 29.3% decrease this year, the most significant decline of any major company worldwide, according to Reuters.

The electric vehicle manufacturer has incurred losses of almost $380 million in 2025 to date, marking the largest deficit among leading firms due to Elon Musk’s political pursuits and weak demand for Tesla electric vehicles. By Thursday, the electric vehicle (EV) manufacturer has experienced a reduction in its market capitalisation of roughly $150 billion since the conflict started. Tesla’s stock plummeted over 14% following Musk’s criticism of Trump’s ‘big beautiful bill.’

The recent legislation suggested removing federal tax credits for EVs, a benefit for Tesla’s sales. Eliminating these credits could create a $1.2 billion hurdle for Tesla, which is presently encountering issues like reduced demand and falling profits, as noted by JPMorgan analyst Ryan Brinkman, as Mint disclosed on June 4, 2025. In March, Tesla experienced a significant drop amid worries regarding demand for its electric cars. According to Mint’s report on March 11, 2025, Tesla’s market value decreased by $130 billion during this time.

It is said that the Tesla CEO’s active role in politics has greatly influenced the electric vehicle company’s operations. Investors had expressed concerns that Musk’s position in leading the Department of Government Efficiency to cut government spending is diverting his focus from managing his companies like Tesla, SpaceX, X, and xAI. Musk officially departed from DOGE on May 29.