Tesla Stock Plunges 7.13% Amid Executive Exodus, Trade Woes

On April 7, 2025, Tesla's stock experienced a significant drop of 7.13% in pre-market trading, reflecting a challenging period for the electric vehicle giant.

One of the key factors contributing to Tesla's recent stock decline is the departure of several high-ranking executives. David Lau, the vice president of software engineering, has announced his departure after more than a decade with the company. Lau's role was crucial, overseeing nearly all of Tesla's software systems, including cloud services, in-car software, and manufacturing systems. His exit follows the departures of other key executives, including the former chief financial officer Zach Kirkhorn and senior vice president Drew Baglino, both of whom left in the past year. These departures raise concerns about the stability of Tesla's leadership and its ability to maintain its competitive edge in the rapidly evolving automotive industry.

Additionally, Tesla has faced significant challenges due to the brand crisis caused by CEO Elon Musk and the impact of U.S. President Trump's trade policies. The imposition of tariffs on imported goods has led to a 15% drop in Tesla's stock over two days, further exacerbating the company's financial woes. The combination of executive departures and external pressures has created a challenging environment for Tesla, leading to a 50% decline from its record high in December 2024.

Furthermore, recent incidents involving Tesla vehicles have added to the company's troubles. A high-speed accident in Chongqing, China, where a Tesla crashed into a flower bed and damaged several parked cars, has raised questions about the safety and reliability of Tesla's vehicles. While the driver was uninjured, the incident has drawn attention to potential issues with Tesla's Autopilot system and its overall vehicle safety.