**Tesla’s Shares Dive as Musk’s Alliance with Trump Backfires**

Tesla, led by CEO Elon Musk, is undergoing an extraordinary downturn, recording seven straight weeks of losses, according to a recent report from *Bloomberg*. *Yahoo Finance* highlights that Tesla’s stock has fallen by 30.2% since the year’s start. This decline is predominantly linked to decreasing global sales, which many attribute to Musk’s growing ties with former President Donald Trump and far-right ideologies.

Consequently, Tesla has completely wiped out the $700 billion increase in valuation it enjoyed after Trump’s electoral win—often referred to as the “Trump bump.”

### Musk’s Bet on Trump
In 2024, Musk made a considerable wager on Trump’s re-election, a strategy that initially seemed successful when Trump won and brought Musk on as a special government employee in his administration. This close association resulted in immediate financial gains for Musk’s ventures, with Tesla’s stock surging following the election.

Yet, the situation has rapidly shifted. Recent sales data show a rising backlash against Musk and Tesla. Global sales for Tesla have fallen by as much as 76%, with numerous consumers pointing to Musk’s political endorsements and connections to Trump as reasons for their disappointment. Some have even compared driving a Tesla to wearing a “big red MAGA hat.”

### The Consequences
Musk’s involvement in Trump’s Department of Government Efficiency (DOGE) has rendered him an increasingly divisive figure. In addition to Musk’s own controversies, Trump’s economic strategies—like tariffs—have also played a role in market volatility, compounding Tesla’s woes.

Now, Tesla has officially forfeited the entirety of its $700 billion gains from the post-election period, indicating a significant change in investor perceptions. The previously thriving stock, driven by Musk’s political risk, has now collapsed.