In 2022, China EV and battery giant BYD's vehicle sales raced ahead of Tesla's and are now well more than twice as high, three times as much in Q4 2024. For all-battery electric vehicles (BEVs), BYD seized the crown in Q4, though Tesla led by a hair for 2024.

European registrations are in free fall, with declines of 76% in Germany, 55% in Italy and nearly 50% in Sweden and with many reports citing Musk's politics as the principal headwind.

Tesla's China sales, meanwhile, fell 49% in February, an alarming slump set against broader monthly gains for its domestic rivals. This prompted a rare comment from China Passenger Car Association Secretary General Cui Dongshu, who noted the "unavoidable risk" from Musk's "personal glory."

Earlier this month, strategists at Bank of America flagged the risk of a post-election "bro bubble" popping and argued that should the S&P 500 erase its post-election gains, "investors currently long risk would very much expect and need some verbal support for markets from policymakers."

On Sunday, Trump was asked by Fox News (FOXA) host Maria Bartiromo if he was expecting a recession this year.

“I hate to predict things like that,” Trump said. “There is a period of transition, because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing, and there are always periods of, it takes a little time. It takes a little time, but I think it should be great for us.”

…Cabinet officials have largely brushed off the market’s decline, even as they acknowledge some signs of weakness in the economy.

Treasury Secretary Scott Bessent told CNBC that the market has “just become hooked” on government spending and that “there’s going to be a detox period.” Commerce Secretary Howard Lutnick said the U.S. would stick to its future tariff plans, said he wouldn’t bet on a recession, and said the stock market doesn’t affect federal policy.