Overview

The 2025 Tesla Stock Crash refers to Tesla's stock (TSLA) price dipping significantly in early 2025 due to concerns over slowing sales, increased competition and CEO Elon Musk's political involvement and public controversies, such as D.O.G.E. The downturn intensified in mid-March, with the stock price dropping 6.85 percent on March 18th to $222.75. This drop was part of a 50 percent decrease in stock price over three months between December 2024 and March 2025, resulting in a market value loss exceeding $700 billion. Amid reports about Tesla stocks crashing were news headlines discussing Tesla dealerships, charging stations and vehicles, especially Cybertrucks, around the United States being vandalized, prompting discussions about whether Musk's involvement in American politics was affecting his businesses. The crash sparked discussions about potential margin calls for investors heavily leveraged in Tesla's stock, with key investors like Kimbal Musk selling off their stock in mid-March 2025. The event also spawned numerous memes about the stock crashing.

Background

In early 2025, Tesla's stock began a significant decline in value, plummeting over 50 percent from its mid-December 2024 peak. This downturn culminated in mid-March 2025 with the stock experiencing a ninth consecutive weekly drop. Contributing factors included escalating competition in the electric vehicle market and concerns over CEO Elon Musk's political engagements affecting Tesla's brand perception.^[1]

Amid the stock dips in March 2025, a series of targeted attacks against Tesla facilities and vehicles occurred across the United States. On March 3rd, seven Tesla charging stations in Littleton, Massachusetts were intentionally set on fire, causing significant damage. Between March 6th and March 13th, the Tesla dealership in Tigard, Oregon experienced two separate shooting incidents, resulting in extensive damage to vehicles and showroom windows.^[2][3]

On March 15th, Elon Musk commented on his dropping stock price and the continued backlash against his company in an interview with Fox News' Larry Kudlow, saying that he's been having "great difficulty" running his other businesses but that he thinks he's "doing the right thing here," in reference to his work with D.O.G.E., "There is a tremendous amount of waste and fraud in the government."

The X^[4] account @unusual_whales posted a relevant clip of the interview on March 15th, 2025, gathering over 6,000 likes in four days.

Reporter: "Tesla, $TSLA, stock is down…. why are you doing this?"Musk: "I think we're doing the right thing here. There is a tremendous amount of waste and fraud in the government." pic.twitter.com/ItfRSJWyjd

— unusual_whales (@unusual_whales) March 15, 2025

Developments

Tesla's stock dipped after March 10th, 2025, dropping over 15 percent in a single day and marking its worst one-day performance since 2020. This sharp downturn led to increased investor sell-offs, with short sellers profiting approximately $16.2 billion as Tesla's market value decreased by over $700 billion. The downturn intensified in mid-March, with the stock price dropping 6.85 percent from $238.01 to $222.75 on March 18th.^[5]

Some internet users discussed the possibility of Musk facing a margin call over the crashing Tesla stock price given that he leveraged one-third company's stock as collateral for loans from various banks. A margin call would occur when Musk's leveraged stocks fall below his lenders' required amount, prompting him to deposit more funds or sell more stock to meet the minimum requirement.^[6]

On March 11th, President Donald Trump notably showcased a fleet of Tesla cars on the White House South Lawn as a public gesture of support for Elon Musk and his struggling company.^[12] The event, which drew controversy among many, also led to the "Everything's Computer" meme.

That same day, X^[13] user and Special Assistant to the President Margot Martin posted a video of Trump making the remark, which received over 31 million views and 25,000 likes in a day.

President realDonaldTrump</a> and <a href="https://twitter.com/elonmusk?ref_src=twsrc%5Etfw">elonmusk hop in a Tesla! pic.twitter.com/NRRm7IEQGf

— Margo Martin (@MargoMartin47) March 11, 2025

Online Reactions

The rapid decline in Tesla's stock price in early 2025 prompted numerous reactions, including memes, across social media, particularly in March of that year.

For example, on March 10th, 2025, Redditor Deucalion667 posted a Peter Parker Crying meme to the /r/memes^[14] subreddit about the stock crashing, receiving over 5,900 upvotes and 80 comments in nine days.

On March 18th, Twitter / X^[7] user @D4nciingQueen tweeted, "It's happening," showing the latest drop in $TSLA stock prices and gathering over 85,000 likes in a day.

Later that same day, X^[8] user @TristanSnell tweeted about various Tesla board members selling off billions in stock, including Kimbal Musk and CFO Vaibhav Taneja. The post gathered over 5,000 likes in a day.

Also on March 18th, 2025, X^[9] user @PrezLives2022 wrote, "Elon is now only about 90.00 away from a margin call as he loses another 12% today. I’m getting giddy," gathering over 45,000 likes in a day.

On March 18th, Redditor /u/Tun-Tavern-1775 reposted a news article about a major Tesla investor calling for Elon Musk to step down as CEO to the subreddit /r/News,^[10] gathering over 67,000 likes in a day.

Later on March 18th, 2025, Minnesota Governor Tim Walz posted a video to X^[11] with the caption, "If you need a little boost during the day, check out Tesla stock 📉" The post gathered over 28,000 likes in a day.

If you need a little boost during the day, check out Tesla stock 📉 pic.twitter.com/KBEh6pOZLW

— Tim Walz (@Tim_Walz) March 19, 2025

Search Interest

External References