Tesla (284.7, -47.35, -14.26%) has emerged as the worst-performing large-cap stock this year. The electric vehicle giant has been buffeted by a confluence of challenges, including a slump in demand for electric vehicles, political controversies stemming from CEO Elon Musk’s ties to far-right groups, and his public feuds with US President Donald Trump.
The Musk-Trump Spat USiggers Stock Plunge
The situation took a dramatic turn on Thursday when Musk launched a scathing criticism of Trump’s signature tax and spending bill via his X social media platform. In response, Trump threatened on social media to terminate government contracts with Musk’s companies, sending Tesla’s stock price into a nosedive.
Market Value Decline and Ranking Drop
Since the start of the year, Tesla’s market value has plummeted by 29.3%, shrinking to $917 billion. This makes it the company with the largest market value decline among major global enterprises. As of June 5th, Tesla’s global market capitalization ranking has slipped from eighth place at the beginning of the year to tenth place.
Brief Recovery on Friday
However, there was a glimmer of hope on Friday as Tesla’s share price rose in early trading. Investors were somewhat reassured by the news that a White House aide planned to contact Musk to mediate his public dispute with Trump.
Apple’s Woes and Microsoft’s Rise
Apple Inc. (200.63, -2.19, -1.08%), which started the year as the world’s most valuable company, has also faced significant challenges. Weak market demand, Trump’s tariff threats, and the slow progress of artificial intelligence initiatives have caused its market value to drop to third place this year. As of Thursday, Apple’s market value has declined by over 20% in 2024, reaching $2.99 trillion.
In contrast, Microsoft has ascended to the top of the market capitalization list. Driven by the surging demand for artificial intelligence services, including its partnership with OpenAI and the integration of tools like Microsoft 365 Copilot, Microsoft has capitalized on the AI boom to achieve this milestone.
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