Tesla plunges 36% in first quarter, worst performance for any period since 2022
Summary
The majority of the quarter overlaps with Musks time in the second Trump administration, leading an effort to slash government spending and regulations, and terminating tens of thousands of federal employees. As of Monday, the DOGE website claimed that, through March 24, the program had notched $140 billion in federal spending reductions, a number equal to less than one-third of Teslas valuation loss in the first quarter. Musk recently said on a Fox News interview with Bret Baier, that he and DOGE plan to slash $1 trillion from total federal spending levels by May. Tesla faces other headwinds, such as a steep decline in new vehicle sales, and pressure to deliver on Musks promises for robotaxis while rivals extend their lead in the market. Musk has said Tesla will launch a driverless ride-hailing business in Austin, Texas in June, but some analysts are voicing skepticism about the companys ability to meet that deadline.