Tesla stock falls 15% in biggest drop since 2020 amid market sell-off

Photo : Reuters

Tesla, the famous electric car company owned by Elon Musk, had a very bad day in the stock market on Monday. The company’s shares fell more than 15% in just one day. This was the biggest fall since September 2020, when the stock dropped over 21% in one day. Many investors are worried about the future of Tesla because fewer people are buying its cars. There are also worries about the economy, and some people are angry with Musk for his links to former U.S. President Donald Trump.

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By the end of Monday, Tesla’s stock price was just over $165 per share. This is a huge drop from its highest price of $479 in December last year. In 2025 alone, Tesla’s shares have lost 41% of their value, with most of the loss happening in the past few months. A big reason for this drop is that Tesla’s most popular cars, the Model 3 and Model Y, are not selling as well as before. Because of this, a major bank, UBS, has lowered Tesla’s stock price target from $259 to $225. Investors fear that the company’s sales in the first three months of the year will be lower than expected.

The overall stock market was also down on Monday, which made things worse for Tesla. The S&P 500, which tracks the biggest companies in the U.S., fell by 2.7%. The Dow Jones fell by 2%, and the Nasdaq dropped by 4%. These were some of the biggest single-day losses in months.

Even though Tesla’s stock crashed, Elon Musk didn’t seem too worried. When someone posted on social media about the loss, Musk simply replied, "It will be fine long-term." However, some people are questioning whether Musk is paying enough attention to Tesla. He is also busy running SpaceX, social media site X (formerly Twitter), and advising Donald Trump.

At the same time, Tesla is facing protests in different parts of the U.S. Some people are angry with Musk and have targeted Tesla’s dealerships. In Oregon, someone fired gunshots at a Tesla showroom. In Boston, Tesla’s charging stations were set on fire. In New York, protesters vandalized a Tesla dealership, and some people were arrested for rallying against Musk.

Tesla is also struggling in Europe. In Germany, Tesla’s biggest market in Europe, car sales fell by 76% in February compared to the same month last year. This has raised concerns that Tesla is losing its position in the electric car market as other car companies become stronger.

Musk’s other businesses are also having problems. On the same day Tesla’s stock dropped, X (Twitter) had a major outage, with users unable to access the site. Musk blamed a cyberattack from Ukraine, but he did not provide any proof. Last week, one of Musk’s SpaceX rockets exploded during launch in Florida, spreading debris in different places.

Musk is also facing legal trouble. A judge recently ruled that Musk deleted important emails linked to Facebook’s Cambridge Analytica lawsuit, even though he was told to save them.

Tesla’s falling stock price, protests, slow car sales, and Musk’s other problems are making investors nervous. While Musk says things will improve, many people are now unsure about Tesla’s future in the electric car industry.