Tesla Faces Longest Stock Drop Amid Recalls, Controversy

Tesla is experiencing a significant downturn, with its stock facing a record ninth consecutive weekly loss, dropping 42% in 2025. This decline has been exacerbated by a range of challenges, including a recall of 46,000 Cybertrucks due to safety concerns and a backlash against CEO Elon Musk's political affiliations, leading to boycotts and vandalism of Tesla vehicles. Analysts have noted that Musk's handling of the situation, including urging employees to hold onto their shares, may not be sufficient to stabilize the company amid declining sales and increasing competition from rivals like BYD. The company's valuation remains precarious, reliant on the promise of autonomous driving technology, which has yet to materialize, prompting concerns that Tesla may be reassessed as a conventional car manufacturer. Experts caution that unless Tesla achieves breakthroughs in autonomy, the stock could continue to falter. Overall, the combination of external pressures and internal management decisions has created a precarious environment for Tesla and its investors.