Tesla (TSLA) has emerged as the worst-performing large-cap stock of 2025, with shares down more than 27% year-to-date, following a sharp public rift between CEO Elon Musk and U.S. President Donald Trump.

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The stock tumbled more than 14% on Thursday after Trump, posting on his Truth Social platform, threatened to revoke federal contracts with Musk’s companies. The warning came after Musk criticized the president’s tax and spending agenda on X, the social media company he owns.

The plunge marked Tesla stock’s steepest single-day decline since 2020, generating roughly $4 billion in profits for short sellers, according to data from Ortex, as cited by Reuters.

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It was the second-biggest one-day gain on record for bearish bets against the EV maker, trailing only the $5.4 billion windfall on Sept. 8, 2020, when Tesla was left out of the S&P 500 index.

Tesla, which began the year ranked eighth globally by market capitalization, has now fallen to tenth place, according to Refinitiv data, as cited by Reuters.

According to TheFly, TD Cowen said Thursday’s events have created “a higher degree of near-term uncertainty” for Tesla’s outlook, particularly in light of how political dynamics could affect vehicle demand.

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The brokerage estimates that 35% of Tesla’s U.S. sales occur in Republican-leaning counties, 12% of which it classifies as “Deep Red.” Of the 65% in Democratic areas, 36% are “Deep Blue.”

TD Cowen maintains a ‘Buy’ rating on Tesla, with a $330 price target.

Separately, Goldman Sachs lowered its price target on Tesla to $285 from $295 and maintained a ‘Neutral’ rating.

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The bank cited weaker delivery trends across China, the U.S., and Europe, with quarter-to-date sales in the U.S. down in the mid-teens year-over-year. Goldman now expects 365,000 deliveries for the second quarter (Q2), down from its prior 410,000 estimate and below consensus.

Tesla’s stock rose as much as 4% in pre-market trading on Friday after reports that White House officials had scheduled a call with Musk to defuse tensions.

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