Tesla’s recent market collapse has left analysts at JPMorgan struggling to find a comparable moment in automotive history.

In just a few months, the company lost nearly 48% of its market value, a staggering drop driven by declining sales and concerns over leadership.

Particularly CEO Elon Musk’s increasing political involvement.

Elon Musk’s woes increase

According to JPMorgan analysts, even past disruptions in the auto industry-such as Japanese and Korean brands facing diplomatic tensions with China in 2012 and 2017—do not compare to Tesla’s decline.

Unlike those cases, which were limited to a single market, Tesla’s struggles in 2025 span multiple countries.

Leadership, politics, and a shifting market

Tesla’s stock, which stood at a peak value of $1.54 trillion at the end of last year, has now plummeted to around $777 billion.

The drop has been fueled by multiple factors, including weakening global demand, brand reputation issues, and Musk’s increasing involvement in politics.

For a brief moment, Musk’s alignment with Donald Trump seemed like a strategic win.

Tesla was the only EV company to see its stock rise after Trump’s election victory, with investors hoping Musk’s influence on the new administration would benefit the company.

Tesla losing money

However, that optimism is now being challenged.

JPMorgan analysts warn that Musk’s work with the Department of Government Efficiency may be hurting Tesla’s sales.

In recent weeks, Tesla showrooms across the U.S. have been targeted by protests and vandalism, further damaging the brand’s public perception.

Trump has stepped in to defend the company, even suggesting that those responsible for the attacks could be labeled as domestic terrorists.

Beyond political entanglements, some analysts worry that Musk’s attention is once again drifting away from Tesla’s core business.

They point to his takeover of X (formerly Twitter) as a moment when Tesla’s pricing and sales expectations started to decline.

Trump tries to salvage Tesla situation

Despite the downturn, Tesla remains the world’s most valuable car company, still far ahead of Toyota, which holds a market cap of $292 billion.

Morgan Stanley analysts acknowledge the current struggles but see potential in Tesla’s upcoming projects, including the launch of its robotaxi in Austin and further development of Optimus, the humanoid robot. However, they caution that given Musk’s history of missing deadlines, expectations for these innovations should be realistic.

A spokesperson for Tesla has yet to comment on the situation, leaving investors and analysts to wonder if the company can recover from one of the most dramatic downturns in automotive history.