--- title: "Tesla’s Stock Has Fallen Dramatically Since Elon Musk Returned to the Business" description: "When Elon Musk returned to Tesla in May, it was met with a surge of enthusiasm. Shares have dropped precipitously since." date: "2025-07-01" modified: "2025-07-01" authors: - name: "Victor Tangermann" job_title: "Senior Editor" link: "https://futurism.com/authors/victor" url: "https://futurism.com/tesla-stock-fallen-elon-musk-returned" categories: - "Advanced Transport" - "Elon Musk" - "Future Society" - "Tesla" - "The Industrialists" tags: - "donald trump" - "elon musk" - "tesla" --- # Tesla’s Stock Has Fallen Dramatically Since Elon Musk Returned to the Business ![When Elon Musk returned to Tesla in May, it was met with a surge of enthusiasm. Shares have dropped precipitously since.]() *\Image: Andrew Harnik/Getty Images\* When multi-hyphenate billionaire Elon Musk [returned to Tesla]() in May, it was met with a surge of enthusiasm from investors who feared he'd given up on the embattled carmaker during his disastrous stint in government. But that optimism has dimmed significantly as Musk has brought his signature aura of chaos and disappointment back to Tesla — and it's clear in the company's stock price, which has actually *fallen* since his homecoming in late May. At the time, the company's share price was hovering around $340, surging up to $360 or so as he came back, but more than a month later, it's slumped to around $300. Most recently, the stock has taken a beating after president Donald Trump [threatened]() to cut the billionaire and his firms off from all government subsidies after even more interpersonal conflict with the billionaire. "Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa," Trump [wrote in a Truth Social post]() in the early morning hours of Tuesday. Tesla's shares have fallen more than 11 percent over the last month alone, indicating that Musk's [step back from the political world]() — later seemingly revoked as he [promised this week]() to create his own political party — to renew his focus on his business interests hasn't exactly impressed investors. During a May appearance at the Qatar Economic Forum, the mercurial CEO [claimed]() he's going to do "a lot less" political spending, [vowing that there's "no doubt]()" about his commitment to leading the EV maker for the next five years. However, even [plummeting sales]() and [disastrous finances]() — largely a result of [rocketing anti-Musk sentiment]() — appear to be the least of the carmaker's problems. The launch of its long-awaited robotaxi service, a [Hail Mary]() intended to save the company's slouching fortunes, has been [plagued with technical issues](), [requiring human "safety monitor" drivers]() to sit in the front seat. Musk's personal feud with Trump isn't exactly helping matters, either, [wiping out about $150 billion]() in the company's market value early last month. In light of the president's latest threats, Tesla's shares slid almost five percent. "He’s upset that he’s losing his EV mandate," Trump [told reporters](). "But he can lose a lot more than that, I can tell you. Elon can lose a lot more than that." Analysts suggest the bitter fighting could hurt Tesla in the long run. First Musk alienated the left-leaning voters who overwhelmingly bought his cars; now he's earned the ire of the few right-leaning ones he courted during his bromance with Trump. "We would expect the stock to be weak to kick off trading this morning as the Street will show concern that the Trump and Musk once BFF relationship now backfires and turns into a junior high school friendship gone bad into an enemy," Wedbush Securities analyst Dan Ives [wrote in a note today](). Others warned that Trump is in a stronger position. "Musk cannot stop himself," Stock Trader Network chief strategist and Tesla investor Dennis Dick [told *Reuters*]() today. "He is getting on Trump's bad side again. Tesla international sales have fallen significantly and if he loses US subsidies, US sales are likely to fall as well." "Musk needs Trump, Trump does not need Musk," he added. Analysts expect Tesla's finances to continue to feel the effects of Musk's damaging leadership. "Based on our checks, the softer demand for Tesla vehicles evident in 1Q results appears to have continued into 2Q," JPMorgan analyst Ryan Brinkman [wrote](). "We expect Tesla's 2Q25 deliveries to miss... but this shouldn't come as a surprise," Deutsche Bank analysts wrote, citing [cratering European sales](). With a functioning and revenue-generating robotaxi service likely still years away — if it ever materializes — Tesla has its work cut out for it. Now that Musk's feud has been reignited in full force after [weeks of relative silence](), the carmaker could have an even harder time attracting new buyers and reassuring investors that the company has a future. **More on Tesla:** *[Tesla's Robotaxi Program Is Failing Because Elon Musk Made a Foolish Decision Years Ago]()* ## Author I've been at Futurism since 2017, where my role has evolved to encompass design, writing, and increasingly editing. I've always been fascinated by space exploration and advanced transportation, which I've leaned into by interviewing luminaries in those fields while closely following the dimensions of policy and regulation that allow next-generation projects to succeed -- or, sometimes, to fail. I'm also keenly interested in the effects of generative AI on society, policies, and democratic institutions, as well as clean energy, physics and biology, and the vagaries of tech leadership. My work for Futurism has been cited by publications including Ars Technica, Gizmodo, PC Magazine, Jalopnik, Fox News, and the New York Post. I spent my childhood living in locations including Manila, the Philippines, and Geneva, Switzerland, attended McGill University, and now live in Toronto, Canada. Before Futurism I worked at AskMen and a small photography studio. In my free time, I'm an avid gardener, foodie, and craft beer lover, as well as a maker of artisanal hot pepper sauces. I have a magnificent dog named Freida. ### Author social links [Bluesky]()