Tesla Share Price Before Musk Joined DOGE vs. Current

Heading into the new year, Tesla stood tall. Its share price had reached an all-time high of $488.54 on December 18, and Elon Musk seemed invincible. Investors were encouraged by the prospect of a Trump presidency, speculating that favourable policies would follow, particularly ones that could benefit Tesla and Musk’s broader business interests.

With momentum behind it, Tesla appeared poised to dominate the EV space globally. However, beneath this optimism lurked growing scepticism around Musk’s evolving public persona and his deepening involvement in politics.

The DOGE Department: A Political Miscalculation?

Much of Tesla’s decline has been traced to Musk’s controversial appointment to the Department of Government Efficiency (DOGE). While positioned as a move to streamline public administration, the role placed Musk in a polarising spotlight.

Rather than rallying support, his involvement in DOGE drew criticism and stoked public distrust. Investors grew wary, fearing the fusion of political controversy and corporate leadership could drag down Tesla’s market value. The entanglement soon began to show in the company’s performance.

A Rapid Decline in Valuation and Wealth

The consequences were swift. According to Bloomberg’s Billionaire Index, Musk’s personal fortune dropped from $449 billion to $301 billion—a staggering decline of nearly $150 billion since Trump took office.

Tesla, once the crown jewel of Musk’s wealth, is no longer the profit-making machine it used to be. The company’s shrinking margins and waning investor confidence have led to a significant downturn in stock performance. For a business so closely linked to its founder’s identity, Musk’s personal and political missteps have had amplified consequences.

Cracks in the EV Giant’s Sales Armour

Tesla’s challenges are not limited to the stock market. Sales figures in early 2025 revealed deeper structural issues. In January, Tesla’s European sales dropped 45% year-on-year. In February, the decline continued with a 39% fall. This downward trend is particularly alarming given that the European electric vehicle (EV) market continues to grow.

While competitors capitalised on demand and expanded market share, Tesla struggled to maintain its previous pace. The company’s brand, once synonymous with innovation, now contends with scepticism and political baggage.

Read More: Tesla Eyes US and Indian Chip Suppliers for Supply Chain Diversification

Stepping Back to Save Face?

According to a news report, Musk may be stepping away from his role at DOGE. Though not officially confirmed, the move is being interpreted as an attempt to distance himself from the backlash and refocus on Tesla.

Conclusion

Tesla’s rise and subsequent struggles in 2025 offer a sobering reminder of the risks when business leadership overlaps with political ambitions. While Elon Musk remains a transformative figure in technology and entrepreneurship, the events of this year underline that no individual-not—not even one of the world’s richest—is immune to market backlash. As Tesla recalibrates, the spotlight remains fixed on how the company and its figurehead will steer out of turbulence.

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