In 2025, Tesla experienced a historic market loss of nearly $380 billion, highlighting challenges in demand for electric vehicles, intensified competition from traditional automakers, and volatile leadership under Elon Musk. Factors such as a declining interest in EVs, Musk's controversial political statements, and strained relations with former ally Donald Trump contributed to this financial setback. As investors grapple with uncertainty, the future of Tesla remains in question amidst broader trends affecting the tech sector.