In a shocking turn of events, Elon Musk has officially stepped away from his role in the Department of Government Efficiency (Doge), igniting fresh concerns over Tesla’s stock performance. After a tumultuous period marked by declining electric vehicle sales, intense political backlash, and a highly publicized feud with former President Donald Trump, Tesla’s stock has plummeted—becoming the worst performer in the S&P 500.

Musk’s exit from Doge, initially seen as a potential relief for investors, has instead sent TSLA shares spiraling downwards by 25% in mere days. The fallout from Musk’s controversial statements about Trump’s spending bill and his subsequent public clash with the former president have left investors reeling. This conflict has not only tarnished Tesla’s public image but also alienated a significant portion of its customer base, primarily composed of environmentally-conscious consumers who lean left politically.

Protests against Musk and Tesla have escalated, with demonstrators targeting showrooms and even vandalizing vehicles. As the company grapples with these external pressures, it reported a staggering 20% drop in car sales compared to last year and a 70% decrease in profits. The mounting challenges have left analysts questioning the company’s future viability.

Yet, amidst this chaos, there are glimmers of hope. Musk has hinted at the imminent launch of Tesla’s robo-taxi service and an entry-level EV model that could broaden the market appeal. With these developments on the horizon, the critical question remains: Can Tesla recover from this downward spiral? Investors are anxiously watching as the second half of 2025 unfolds, hoping for a turnaround that could restore confidence in Musk’s vision and, ultimately, Tesla’s stock.