Introduction
Tesla, once a leader among large-cap stocks, is experiencing significant challenges this year, primarily due to declining electric vehicle demand and controversies surrounding its CEO, Elon Musk.Context
Since the beginning of the year, Tesla has faced scrutiny not only for its sales figures but also for Musk's political associations, particularly his ties to far-right groups and recent tensions with President Donald Trump. The culmination of these events has resulted in a staggering 29.3% decline in Tesla's market capitalization, which now stands at $917 billion, marking it as the largest drop among leading global companies.Developments
On June 5, Tesla fell to the tenth position in global market capitalization rankings, down from eighth at the start of the year. The situation worsened on Thursday, when Tesla shares took a hit following Trump's social media threats to terminate government contracts with Musk’s companies due to Musk's criticism of Trump's tax reform.However, on Friday morning, there was a slight rebound in Tesla's shares as news emerged that White House aides had arranged a call with Musk in an attempt to reconcile after the public fallout with Trump.
In contrast, Apple, which started the year as the world's most valuable company, has now dropped to No. 3. This decline is attributed to sluggish demand in China, Trump’s tariff threats, and slower advancements in artificial intelligence, resulting in a 20% decrease in market cap to $2.99 trillion.
Currently, Microsoft holds the No. 1 position in market capitalization, buoyed by a surge in demand for AI services, including its strategic partnership with OpenAI and the rollout of tools like Microsoft 365 Copilot.