Tue Mar 11 05:38:00 UTC 2025: ## Tesla Stock Plunges 15% in Worst Day Since 2020 Amidst Recession Fears and Musk Controversy

**New York, March 11, 2025** – Tesla shares experienced their worst single-day decline in years, plummeting 15.4% on Monday, closing more than 50% below its all-time high. The dramatic drop, contributing to a broader market sell-off, was fueled by a confluence of factors including concerns over slowing electric vehicle sales, escalating trade war tensions under President Trump, and growing controversy surrounding CEO Elon Musk.

The sell-off saw the S&P 500 fall 2.7%, the Dow Jones Industrial Average drop 2%, and the Nasdaq Composite plunge 4%. UBS analysts further downgraded Tesla’s price target, citing weaker-than-expected first-quarter delivery forecasts for the Model 3 and Model Y. This, coupled with fears of a US recession and the impact of Trump’s tariff plans, exacerbated the negative sentiment.

Adding to the pressure, Tesla is facing a series of challenges. Reports indicate a significant drop in sales in Germany, Europe’s largest EV market, with February sales plummeting 76% year-over-year. Furthermore, the company has been targeted by protests and vandalism at dealerships across the US, including incidents of arson and gunfire. Authorities have made arrests related to these protests.

Musk’s leadership is also under scrutiny. His advisory role to President Trump, coupled with recent setbacks across his business empire – including widespread X (formerly Twitter) outages, attributed by Musk to a Ukrainian cyberattack, and a SpaceX rocket explosion – has raised questions about his ability to effectively manage his diverse portfolio of companies. Musk dismissed market concerns, stating on X that Tesla’s long-term prospects remain positive. He also claimed, without evidence, that Democratic donors were behind the protests against Tesla.

The year-to-date decline in Tesla stock now stands at 41.4%, highlighting the significant challenges the company faces amidst a turbulent economic and political climate.

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