Even Elon Musk’s brother dumped his Tesla shares.

Tesla is facing a dramatic downturn, with its stock value collapsing and even its own executives offloading shares at an alarming rate. JPMorgan, one of the world’s largest banks, recently released a scathing analysis, calling Tesla's decline "unprecedented" in the automotive industry.

The bank slashed its first-quarter delivery forecast by 20%, from 444,000 to 355,000, citing CEO Elon Musk’s increasingly controversial political actions as a major factor behind the company’s struggles.

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Musk’s growing involvement in government affairs, particularly through his role in the Department of Government Efficiency, has polarized consumers and investors alike. According to JPMorgan analyst Ryan Brinkman, while some on the political right may support Musk, the overall effect on Tesla’s sales appears overwhelmingly negative.

The company is also vulnerable to shifting regulatory policies under President Donald Trump, whose administration remains hostile to electric vehicles despite Trump himself recently purchasing a Tesla.

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The situation is even worse in Europe, where Musk’s political stances—including his perceived alignment with Vladimir Putin, anti-NATO rhetoric, and support for far-right parties—have alienated customers.

Tesla's new vehicle registrations in the region plunged 50 percent in January compared to the same period in 2024.

In Europe, Tesla sales felt a dramatic 50% fall.

While major automakers have faced market crashes before due to geopolitical issues, JPMorgan argues that Tesla’s global presence makes its losses more severe. Despite this grim outlook, Morgan Stanley has taken a more optimistic stance, suggesting Tesla's stock could still rebound by as much as 90 percent.

However, JPMorgan’s skepticism is notable, given its past legal disputes with the company.

Even Tesla's leadership is losing confidence

As Tesla’s stock continues its downward spiral — falling over 40% since the beginning of the year — company insiders are cashing out, with reports saying that four top executives have sold more than $100 million worth of shares in recent weeks, a troubling signal for investors.

Musk’s brother, Kimbal Musk, unloaded 75,000 shares worth $27 million last month, a filing with the Securities and Exchange Commission shows. At the same time, longtime Musk ally James Murdoch sold $13 million on the same day Tesla suffered its worst single-day decline since the COVID-19 pandemic.

Tesla’s board chairman, Robyn Denholm, also sold over $75 million in shares, though her sales were reportedly planned in advance.

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Analogies are begging. Musk’s unpredictable leadership has already led to massive value destruction at Twitter – now called X, which he purchased for $44 billion in 2022, only to see its worth decline by an estimated 80%.

With social media users now exposing multiple defects in Cybertrucks, including on X, Tesla seems to follow a similar path. Yet, it's now still the most valuable company on our planet. 

Unfortunate events marred his aerospace company SpaceX too. Two Starship rockets exploded in January and March 2025.

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