#CEXvsDEX101 Tesla's stock has recently experienced significant losses, primarily due to escalating tensions between CEO Elon Musk and President Donald Trump. Their public feud, centered around proposed legislation to revoke electric vehicle tax credits, has led to investor concerns about potential political and regulatory repercussions for Tesla. Consequently, the company's market capitalization dropped by over $150 billion, marking its steepest single-day decline in four years .

Additionally, Tesla faces mounting challenges from competitors like China's BYD, which has surpassed Tesla in global EV sales and introduced advanced charging technologies . Tesla's sales have also declined in key markets, with a 45% year-over-year drop in Europe and a 15% decrease in China . These factors, combined with Musk's political engagements and the resulting brand perception issues, have contributed to the stock's downturn.

The broader market has felt the impact, with the Nasdaq experiencing its sharpest fall since 2022 . Investors remain cautious as Tesla navigates these multifaceted challenges.