Tesla Inc (TSLA) Stock; Sheds $380B in Value, Slips to 10th Place in Global Market Cap Rankings

TLDR;

Tesla’s stock slipped over 2 percent on Monday after strong gains on Friday, reflecting investor caution. The company has lost nearly $380 billion in market value this year and dropped to 10th place in global market cap rankings. Weakening demand and fierce competition from traditional and Chinese automakers have eroded Tesla’s market share. Elon Musk’s controversial public image has added uncertainty and pressure on the brand.

Tesla’s shares opened the week with a notable drop, sliding more than 2 percent in early trading on Monday to around $288.30. This came on the heels of a strong performance on Friday, when the stock jumped nearly 5 percent to close at $295.14.

The pullback in Monday’s pre-market session suggests investors may be locking in recent gains or bracing for broader economic uncertainties.

However, this modest decline only hints at the deeper challenges Tesla is facing in 2025, as the company has lost nearly $380 billion in market capitalization, slipping to the 10th largest company globally.

Tesla, Inc. (TSLA) Stock Price

Tesla’s Market Share Erosion

Once the undisputed leader in electric vehicles, Tesla’s grip on the market is loosening. At the start of the year, the company ranked as the eighth largest in terms of market capitalization. Now, it sits at tenth place with a valuation hovering around $917 billion. While Tesla’s Model Y remains the best-selling electric vehicle globally, delivering over 200,000 units in the first quarter, the broader market tells a different story.

Tesla’s market share has declined sharply, particularly in the United States and Europe. In the U.S., Tesla controls just above 10 percent of the EV market, down significantly from previous years. Europe has been even tougher, with sales dropping nearly 50 percent year-over-year.

This erosion underscores Tesla’s transition from market pioneer to one player in a crowded field. Established automakers like Volkswagen, along with aggressive newcomers such as China’s BYD, have stepped up their game. BYD’s Seagull model, for example, has claimed a top spot in global battery electric vehicle sales, while Tesla’s registrations in China fell by over 6 percent.

Financial Strain Despite Production Expansion

Tesla’s financial performance paints a stark picture of mounting pressure. In the first quarter of 2025, revenue declined by 9 percent compared to the same period last year, landing at $19.3 billion. Even more concerning, net income plummeted 71 percent to just $409 million. Vehicle deliveries fell 13 percent, marking the weakest quarterly output Tesla has seen in nearly three years.

The company’s strategy to maintain competitiveness has included significant price cuts across its product lineup. While necessary to fend off competition, these cuts have compressed Tesla’s profit margins. This squeeze comes even as Tesla ramps up production with new Gigafactories in Austin and Berlin, facilities designed to improve scale and efficiency. Yet these expansions have not been enough to offset slowing demand and intensifying rivalry.

Elon Musk’s Controversies Add to Uncertainty

Tesla’s market troubles are compounded by the complex influence of its CEO, Elon Musk. His recent public feud with former President Donald Trump escalated tensions, with Trump threatening to cut government contracts to Musk’s companies after Musk criticized Trump’s tax policies on social media.

These political clashes have heightened scrutiny, particularly in Europe, where Tesla’s sales have taken a hit amid negative perceptions linked to Musk’s outspoken persona. The company now faces the challenge of separating its brand from Musk’s sometimes polarizing presence, a shift from earlier years when Musk’s public profile was a key driver of investor enthusiasm.

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