June 9, 2025 – Tesla has emerged as one of the worst-performing blue-chip stocks this year amid a confluence of factors, including sluggish electric vehicle sales, political controversies surrounding Elon Musk’s ties to far-right groups, and a recent public spat with former U.S. President Donald Trump.
The electric vehicle giant’s shares took a significant hit on Thursday after Musk criticized Trump’s signature tax and spending legislation on social media platform X. In response, Trump threatened to terminate government contracts with Musk’s companies, sending Tesla’s stock price tumbling.
So far this year, Tesla’s market capitalization has plunged by 29.3% to $917 billion, making it the biggest loser among major global listed companies. At the start of the year, Tesla ranked eighth in the global market cap rankings, but it has now slipped to tenth place.
However, investor sentiment showed signs of stabilization on Friday morning as White House aides stepped in to arrange a call between Musk and Trump, aiming to defuse tensions. As a result, Tesla’s stock price rebounded in early trading.
Meanwhile, Apple, which held the top spot in global market cap rankings at the beginning of the year, has now fallen to third place. The decline is attributed to weakening demand in the Chinese market, looming tariff threats, and a slower-than-expected pace in advancing its AI initiatives. As of Thursday, Apple’s market cap had shrunk by over 20% year-to-date, dropping to $2.99 trillion.
In contrast, Microsoft has surged to the top of the rankings, riding a wave of soaring demand for AI services. Its advantage stems from its partnership with OpenAI and the integration of AI tools into its product ecosystem.
