Tesla’s future appears increasingly uncertain as board members join other investors selling stock in the company over Elon Musk’s controversial foray into politics and Donald Trump’s tariffs.
The firm has experienced a drop of more than 40% in its value in 2025 as the decline in sales expectations and the increasing politicisation of its brand have driven away investors and consumers, severely affecting the company’s stability, says Antonio Di Giacomo, financial markets analyst for brokerage LATAM at XS.
Mr Musk’s relationship with President Trump has been seen as a factor in some of Tesla’s customers seeking alternative models in the electric vehicle market,
Vehicle deliveries in the first quarter of 2025 are expected to be at their lowest level in three years, he says.
“The loss of customers has been a significant blow, but competition from Chinese manufacturers has also impacted Tesla. Companies like BYD have gained ground with more affordable and technologically advanced models, reducing Tesla’s market share in China and other key regions.
“On the other hand, the company has expressed concern over trade policies that Trump may implement.”
Despite the close relationship between Musk and Trump, the Tesla board has sent a letter to the Office of the US Trade Representative warning about the effects of possible trade retaliation. The company argues that US exporters, like itself, could be disproportionately affected by increased tariffs on foreign products and components.
The uncertainty generated by these factors has led several top executives and board members of Tesla to sell large amounts of stock. Since February, executive stock sales have exceeded $100 million, suggesting a lack of internal confidence in the company’s future.
James Murdoch, a board member, sold $13 million worth of shares on 10 March, the same day Tesla suffered its most significant single-day drop in five years.
Even Musk’s brother Kimbal, a board member, sold 75,000 shares valued at $27m, while Robyn Denholm, the chair, made two recent sales totaling over $75m.
Analysts have interpreted these transactions as warning signs about the company’s future performance, as Tesla’s market value has fallen nearly 50% from its peak in December 2024.
“Investors are cautiously watching the company’s performance in the coming months,” says Mr Di Giacomo.
“Tesla’s future appears increasingly uncertain with rising competition, brand politicisation, and economic uncertainty. Unless the company can reverse the trend with practical strategies, 2025 could become one of the most challenging years in its history.”
While Tesla stock took another big hit today, shares in China’s electric vehicle champion BYD touched a record high after founder Wang Chuanfu claimed it could now charge its EVs as quickly as it takes to fill a car with petrol.
BYD’s stock jumped 4% to 401.40 Hong Kong dollars (€47) in Hong Kong, taking its gain to 855 over the past 12 months.
The company added that two of its popular sports utility models, both priced under $40,000 (€36,500) in China, would be equipped with the new ultrafast charging system from April.
BYD counts Warren Buffett’s Berkshire Hathaway as a significant investor.
