Flagging global sales and Elon Musk’s increasingly outspoken political activities are combining to rock the value of Tesla.

Shares in the once-trillion-dollar company saw their worst day in five years this week. Year to date, Tesla’s stock has plunged 36% — though it is still up by some 54% over the past 12 months.

For Musk, Tesla’s shares remain his primary source of paper wealth, though he has also turned his stake in SpaceX into a personal lending tool. But it was proceeds from selling Tesla shares that helped Musk complete his acquisition of Twitter, now known as X.

Musk’s wealth also allowed him to help vault Donald Trump into a second presidential term. Even as Musk’s net worth has diminished as a result of Tesla’s recent share-price declines, data suggests he is in no danger of losing his title as the world’s wealthiest person.

Musk has said on X that he is not concerned about Tesla’s recent drop in value. Still, evidence suggests the company is entering a period of transition.

A spokesperson for Tesla did not respond to a request for comment.

Musk’s wealth has propelled him to a global presence that lacks precedent — and has polarized world opinion about the tech entrepreneur in the process. Any weakening of his financial position, therefore, could undercut his influence in the political and tech spaces where he now commands outsize attention.According to Bank of America, Tesla’s European sales plummeted by about 50% in January compared with the same month a year prior.

Some say this is attributable to a growing distaste for Musk, who has begun dabbling in the continent’s politics in the wake of his successful support of Trump’s candidacy last year.

Others note Tesla’s European market is facing increased competition from the Chinese electric-vehicle maker BYD, which has telegraphed ambitious plans for expansion on the continent.  

A more decisive blow to Tesla’s near-term fortunes may be emanating from China itself. There, Tesla’s shipments plunged 49% in February from a year earlier, to just 30,688 vehicles, according to official data cited by Bloomberg News. That’s the lowest monthly figure registered since July 2022 — amid the throes of Covid-19 — when it shipped just 28,217 EVs, Bloomberg said.

Tesla is now facing intense competition from other Chinese EV makers, including BYD.

Yet even there, a Chinese official also warned about the impact of Musk’s high-profile politicking.

“As a successful businessman, one should be embracing 100% of the market: Treat everyone nicely, and everyone will be nice in return,” the secretary of China’s Passenger Car Association, said in a briefing Monday, Bloomberg reported. “But if you look at it in terms of voting, then half of voters will be friendly to you and half of them won’t be.”

“This is the unavoidable risk that’s come after he got his personal glory,” the secretary, Cui Dongshu, said Monday, referring to Musk.

On Friday, Reuters reported Tesla was planning to sell a Model Y costing at least 20% less to produce to defend its China share.

And in the U.S., Tesla’s January sales were down about 11%, according to data from the S&P Global analytics group — an outlier at a time when EV sales for all other brands are trending higher in America.

Though he has long worn multiple proverbial hats, Musk’s role in the White House as nominal head of the Department of Government Efficiency may be his most consequential. And having influence with the Trump administration could be critical to Tesla’s fortunes. This week, Trump promised he would purchase a Tesla in a showy presentation on the White House lawn, seemingly further cementing the Trump-Musk alliance.

On X — the social media platform he owns — Musk’s frenetic posting is increasingly focused on politics and America’s culture wars, with an occasional nod to SpaceX launches.

His apparently undiminished role in the Trump administration — he was seen leaving the White House last weekend alongside Commerce Secretary Howard Lutnick — has sparked boycotts in Europe, as well as protests and even acts of vandalism against auto owners in the U.S.

“When people’s cars are in jeopardy of being keyed or set on fire out there, even people who support Musk or are indifferent to Musk might think twice about buying a Tesla,” Ben Kallo, an analyst at Baird, told CNBC’s “Squawk on the Street” on Monday.

In a note to clients this week downgrading its estimate of deliveries, analysts with JPMorgan said the damage to Tesla’s brand has been serious.

“We struggle to think of anything analogous in the history of the automotive industry, in which a brand has lost so much value so quickly,” they wrote.

Tesla itself is warning about the fallout from retaliatory measures taken by countries targeted by Trump’s tariffs, saying in a letter to the U.S. trade representative this week that the company may be “exposed to disproportionate impacts when other countries respond to US trade actions.”

Already, the Canadian province of British Columbia has announced it was ending subsidies for Tesla’s products.

For all the oxygen Musk has taken up with his political activities, concerns about Tesla products themselves are equally keeping investors and analysts up at night.

Musk has “neglect[ed] the rest of Tesla’s automotive business as he thought that by the end of every year for the last 6 years, Tesla would be able to flip a switch and make all its vehicles self-driving — automatically increasing their value and making them infinitely more competitive than other vehicles,” Fred Lambert, who covers the company for the Electrek electric vehicle blog, wrote in a recent post.

Meanwhile, Musk decided to kill Tesla’s cheaper, $25,000 model while going all-in on the Cybertruck, whose sales have yet to take off, Lambert said.

“Tesla’s core business remains selling cars and batteries,” he wrote. “There’s no doubt that the business of selling cars is not going well for Tesla right now, and under Musk, there’s no clear path to improvement.”

By contrast, many analysts continue to take a much longer view of Tesla’s outlook. In his most recent note to clients about the company, Morgan Stanley analyst Adam Jonas, one of the most closely watched observers of Tesla, summarized the long-term outlook that he says continues to justify the company’s eye-watering valuation.

“Tesla’s softer auto deliveries are emblematic of a company in the transition from an automotive ‘pure play’ to a highly diversified play on AI and robotics,” he wrote in a note March 2.

While that was before the most recent sell-off intensified, Jonas said he was already discounting market gyrations.

“While the journey may be volatile and non-linear, we believe 2025 will be a year where investors will continue to appreciate and value these existing and nascent industries of embodied AI where we believe Tesla has established a material competitive advantage,” he wrote.

Nestled in a modest storefront in New York City’s East Village, Mary O’s Irish Soda Bread Shop blends into the other red-brick businesses on the block. But one thing sets it apart: Customers routinely line up, sometimes for hours, to get their hands on her freshly baked goods before they sell out.

The shop’s menu is simple, featuring Irish soda bread loaves and scones served with salty butter and fresh raspberry jam. The recipes, passed down through generations of Mary O’Halloran’s family, are at the core of her operations. But the secret to her success is precision. Only O’Halloran herself handles the batter, a non-negotiable standard she insists maintains the quality of her baked goods.

“I’ve had people come and say, ‘Why don’t you have somebody come in and help you?’ It’s not going to work,” she said. “The scone does not come out the same.”

O’Halloran said the demand for her soda bread scones surges every March for St. Patrick’s Day, but her journey to success hasn’t been easy. Five years ago, O’Halloran was facing the closure of her East Village pub due to the financial strain of the Covid-19 pandemic. Her husband, a longshoreman working in Alaska, was unable to return home due to travel restrictions, leaving her to manage the business alone.

It was her loyal pub customers who encouraged her to start selling her scones, a treat they had grown to love. What began as a small-scale venture soon caught the attention of Brandon Stanton, the creator of the viral “Humans of New York” social media account with more than 12 million followers.

After interviewing O’Halloran, Stanton offered to help spread the word about her scones. Reluctant at first, O’Halloran eventually agreed, leading to a spike in sales.

“So I wrote a story on this, and we ended up that night selling a million dollars’ worth of scones,” Stanton told NBC News. “It is one of the greatest stories in the world.”

The overwhelming response turned O’Halloran’s small baking operation into a community effort. Regular customers and neighbors pitched in by packing orders, printing labels and decorating boxes with handwritten notes and custom drawings from one of her daughters. Despite the surge in demand, O’Halloran remained committed to quality, handling every batch of batter herself.

“Mary is where she is because that scone tastes so dang good,” Stanton said. “She would have got there without me.”

It took more than a year to fulfill the backlog of orders, but the hard work paid off. The revenue not only saved her pub, but allowed her to open Mary O’s Irish Soda Bread Shop in November 2024. Customers from around the world flock to her store to sample the viral scones and meet the woman behind the treats.

“I live in Los Angeles, but they told me, you know, next time you’re in town, there’s a place we have to go, and it’s the best scone you’ve ever had. It’s the best soda bread,” out-of-towner David Murphy said.

For O’Halloran, the hard work has been worth it.

“I love it, so it’s easy,” she said. “Of course I’m tired, but I love what I get from it with people. So it’s easy.”

Almost nothing is guaranteed in life. Certainly not weather, electricity, health, tariffs or eggs. But for more than 50 years, American consumers could count on Southwest Airlines letting them check bags for free.

Dallas-based Southwest is ending the policy in May. Customers are not happy.

“It was the only reason I flew Southwest,” said MaKensey Kaye Alford, a 21-year-old singer and actress who lives near Birmingham, Alabama.

Alford, who is planning to move to New York City later this year, said she would “definitely” consider taking another airline now.

Southwest’s customer-friendly policies have survived recessions, oil price spikes and even the Covid-19 pandemic, winning it years of goodwill and a loyal following, even as it has grown. No other airline carries more people in the United States than Southwest.

Now, the airline with an unrivaled streak of profitability (its almost never posted an annual loss) is under pressure to increase profits as big competitors outpace the airline. So it’s backpedaling off of years of banishing the thought that they would charge customers for bags, adding to other business-model tweaks like assigned seating that give it more in common with all other airlines.

Errol Joseph, 36, a sales consultant who lives in New York and Dallas, said he would now consider flying on Delta Air Lines if the price is the same as Southwest because its planes have seatback screens, unlike Southwest. Joseph added that with baggage policy change, there’s “pretty much no reason to be loyal.”

The bag policy had been around longer than most women were able to get credit cards on their own without a man’s signature. But those days are over. No more freebies, America.

Retailers, restaurants and airlines are among the businesses that have been pulling back on free perks, from complimentary birthday coffees to free package returns, since the pandemic ended.

Increasingly, airline perks are only available for loyalty program members or customers who buy a more expensive ticket.

Delta offers customers free Wi-Fi on board, but only for those who have signed up for its SkyMiles loyalty program. United Airlines is making a similar move, meanwhile, installing equipment on its planes so customers can soon connect to Elon Musk’s Starlink satellite Wi-Fi for free if they are members of the airline’s MileagePlus program.

It typically takes real financial pressure for companies to return to giveaways, but it’s not unprecedented. Starbucks, for example, got rid of upcharges for dairy alternatives to attract customers to try to reverse a sales slump.

Southwest’s decision pits investors against customers.

Activist hedge fund and, as of last year, big Southwest shareholder Elliott Investment Management has been increasing pressure on the airline to raise its profits as rivals like Delta and United have pulled ahead. Elliott pushed for faster changes at the carrier, which has been long hesitant to change, so it could increase revenue. The firm last year won five board seats in a settlement with Southwest.

In fact, after Southwest unveiled the bag shift and other policy changes, its shares rose close to 9% this week, while Delta, United and American, each fell more than 11%. CEOs of all the carriers raised concerns about weaker-than-expected travel demand, but Southwest bucked the trend, as it expects the changes to add hundreds of millions of dollars to its bottom line.

“Shareholder activism is reshaping LUV into a company that we believe investors will eventually gravitate to,” wrote Seaport Research Partners airline analyst Dan McKenzie in a note Wednesday as he raised his price target on Southwest’s shares to $39 thanks to the policy changes even though “macro backdrop is glum.”

The decision to ditch the two-free-checked bags is part of the airline’s big profit-seeking makeover in which it is shedding other long-standing offerings like open-seating and single-class cabins for seat assignments and pricier extra legroom options.

It will also start offering a no-frills, no-changes basic economy ticket. Flight credits will also soon have expiration dates. Last month, Southwest had its first-ever mass layoff, cutting about 15% of corporate jobs. It has also slashed unprofitable flying.

Air travel hasn’t stood still over the last half century, and while it’s held onto many core tenets, neither has Southwest. It has gradually made changes over the years, starting to sell things like early boarding, for example. And with air travel breaking new records, assigned seating is necessary for both customers and to make the jobs of employees easier, Southwest executives have argued.

Charging for checked bags was something Southwest leaders repeatedly said would cost it more than it could make. (U.S. carriers brought in more than $7 billion in baggage fees in 2023.)

In a presentation at an investor day last September, Southwest said it would gain between $1 billion and $1.5 billion from charging for bags but lose $1.8 billion of market share.

Southwest executives said that’s changed.

Hours after breaking the news to customers, CEO Bob Jordan said at a JPMorgan industry conference on Tuesday that “in contrast to our previous analysis, actual customer booking behavior through our new booking channels such as metasearch, did not show that we are getting the same benefit from our bundled offering with free bags, which has led us to update the assumptions.”

Jordan added that the carrier has new executives with “direct experience implementing bag fees at multiple airlines, and that’s also helped further validate the new assumptions.”

But thousands joined in consumers’ cri de coeur.

Southwest posted on Instagram on Thursday, two days after its bombshell announcement, saying “It’s not like we traded Luka,” a nod to the shocking February trade of Dallas Mavericks superstar Luka Doncic to the Los Angeles Lakers. As of Friday afternoon, the post, which also included information about the change, got more than 14,000 replies, far more than couple of hundred responses the account usually gets.

“Taking a screen shot of this as it will be the thumbnail for the harvard business review case study of destroying a brand an entire company,” replied Instagram user rappid_exposure.

Frances Frei, a professor of technology and operations management at Harvard Business School, said that, indeed, no other company is likely as studied as Southwest.

“I sure hope this isn’t a case of activist investors coming in and insisting on a set of decisions that they won’t be around to have to endure,” she said. “Great organizations get built over time. It doesn’t take very long to ruin an organization, and I really don’t want this to be an example of that.”

Southwest’s two checked bags-fly-free policy officially ends May 28 but for now the slogan is still found on board, printed on cocktail napkins.

There will be exceptions: Customers who have a Southwest Airlines co-branded credit card can get one bag for free, and customers in its top tiers of service (read: pricier tickets) or its top-tier loyalty program members will get one to two free checked bags.

Whether customers abandon Southwest or are simply reacting to the change remains to be seen.

The CEOs of Delta, United and Spirit this week said they see an opportunity to win over customers who might turn away from Southwest.

Many travelers won’t have a lot of other options, however, with so much consolidation among U.S. carriers and stronghold hubs, though they might have to venture to other airports.

Southwest has a roughly 73% share at Baltimore/Washington International Thurgood Marshall Airport, a more than 83% share in San Francisco Bay Oakland International Airport, and 89% share in Long Beach, California, according to aviation-data firm Cirium.

The real test, Harvard’s Frei said, will be whether the bag change will slow down Southwest’s operation, with more customers bringing carry-on bags on board to avoid the checked luggage fees.

“I just fear the cost is being underestimated,” she said. “It’s real operational harm to Southwest if they go slower.”

Southwest is already preparing its employees for an onslaught of customer luggage at the gate.

Just after its announcement on Tuesday, Southwest told its employees in a memo that customers will “undoubtedly carry on more luggage than before.”

Gate agents will receive mobile bag-tag printers “reducing the need for string bag tags” and the company will design new carry-on size guides so customers can see if their luggage fits as a carry on, according to a staff memo sent by Justin Jones, EVP of operations, and Adam Decaire, senior vice president of network planning, a copy of which was seen by CNBC.

The airline also plans to speed up retrofits of its Boeing 737-800s and Max aircraft with bigger overhead bins.

Frei said not charging for bags, unlike the Costco $1.50 hot dog, is not a loss leader, something a company sells at a loss just to win over customers who might buy more expensive, and profitable, items.

As much as it’s been beloved by customers, the checked bag policy also had a helped the airline turn planes around faster.

“The reason isn’t because it’s kinder to customers. It’s because it’s a fast turnaround airline,” she said. “If I charge for bags, you will be more likely to carry more luggage on board. And when you carry more luggage on board, I lose my fast turnaround advantage.”

Southwest is confident that it’s prepared for an increase in gate-checked bags and onboard luggage.

“We have a series of work streams that are underway with our with our current operations, to make this not impact our turn times,” COO Andrew Watterson said in an interview.

Time will tell how it shakes out. For now, we have the $1.50 Costco hot dogs.

PepsiCo said Monday that it is buying prebiotic soda brand Poppi for nearly $2 billion.

While soda consumption has broadly fallen over the last two decades in the U.S., prebiotic sodas, fueled by industry newcomers Poppi and Olipop, have won over health-conscious consumers over the last five years. The category’s growth makes it attractive for Pepsi and its rival, Coca-Cola, which recently launched its own prebiotic soda brand, Simply Pop.

Pepsi said it plans to acquire the upstart Poppi for $1.95 billion. The deal includes $300 million of anticipated cash tax benefits, making the net purchase price $1.65 billion.

Pepsi will also have to make additional payments if Poppi achieves certain performance milestones within a set time frame after the acquisition closes.

Pepsi did not say when the deal is expected to close, pending regulatory approval.

Poppi’s founders Allison and Stephen Ellsworth launched the brand back in 2018, the same year that Olipop was founded. Poppi’s formula includes apple cider vinegar, prebiotics and just five grams of sugar.

The company recently made its second straight Super Bowl appearance with an ad during the big game, demonstrating both its deep pockets and a desire to reach an even wider audience.

But as Poppi’s sales have grown, it has also attracted backlash for its health claims. The company is currently in talks to settle a lawsuit that argued Poppi’s drinks are not as healthy as the company claims, according to court filings.

For its part, rival Olipop was valued at $1.85 billion during its latest funding round, which was announced in February. In 2023, Olipop founder and CEO Ben Goodwin told CNBC that soda giants PepsiCo and Coca-Cola had already come knocking about a potential sale.

Over a double cheeseburger and fries, Robert F. Kennedy Jr. told Fox News host Sean Hannity earlier this month of his plans to improve the country’s health by incentivizing companies to step away from processed foods.

From across the red high-top table of a Florida Steak ’n Shake, the health and human services secretary went on to praise the Indianapolis-based fast-food chain as a shining example of change since it began cooking its shoestring fries in beef tallow instead of one of the many seed oils that have become targets of Kennedy’s health agenda.

“Steak ’n Shake has been great,” Kennedy said. “We’re very grateful to them for RFK’ing the french fries.”

The nationally televised praise marked the latest conservative endorsement for Steak ’n Shake, a 91-year-old company with 450 locations nationwide that has become one of the most high-profile businesses to support Kennedy’s “Make America Healthy Again” agenda — a move that has been boosted by Republican politicians and MAGA influencers including Rep. Anna Paulina Luna, Charlie Kirk, Laura Loomer, Kari Lake, Tony Shaffer and Benny Johnson.

“I just had a cheeseburger and fries cooked in beef tallow today for lunch! Delicious!!” Rep. Marjorie Taylor Greene, R-Ga., wrote on X.

At a time when many companies might be looking to avoid politics, Steak ’n Shake is opting to publicly align itself with Kennedy and other high-profile conservatives. On social media, the brand has transformed its feed from the usual steam of burgers and shakes into a near nonstop stream of Trump-adjacent iconography: Elon Musk, Teslas, Fox News clips and even a red hat emblazoned with the words “Make Frying Oil Tallow Again,” a version of which is available for purchase on Kennedy’s MAHA merchandise website.

The company has not publicly embraced Trump or any of his policies but has been full-throated in its embrace of Kennedy.

“We support MAHA,” Steak ’n Shake Chief Operations Officer Dan Edwards told NBC News last week. “Restaurant chains like ours would like to meet customer demand for better quality.”

Edwards said support for the company is “across the political spectrum” and that “there is nothing political about great-tasting fries.” He did not answer specifically whether the company had any fears about alienating customers who do not support Kennedy’s MAHA agenda or Trump.

“We are grateful to Secretary Kennedy for his leadership and for raising awareness about beef tallow,” he added.

It’s a bold move for a company that has weathered a rocky financial situation that forced the reported closure of 200 locations since 2018. While there is a wide array of relatively new and small brands that have sought to capitalize on the strength and passion of the MAGA movement, few, if any, established companies have shifted their public identity so quickly.

Politics aside, Steak ’n Shake’s choice to focus on seed oils comes with its own controversy.

The MAHA agenda, helmed by Kennedy, features several health-focused concerns of questionable veracity, including skepticism of the food and drug industry, fluoride in water and vaccines. Seed oils have also long been a target of unfounded theories about negative health impacts, some of which Kenney has touted, calling them “one of the most unhealthy ingredients we have in foods.”

Health experts have sought to counter those claims, noting that replacing seed oils with saturated fats offers little to no dietary benefit and can end up doing harm.

Maya Vadiveloo, an associate professor at the University of Rhode Island who specializes in nutrition, said it is “well established that saturated fats are linked to an increased risk of heart disease, while vegetable oils, including oils from seeds, protect heart health.”

Edwards said that while the burger brand supports Kennedy’s MAHA movement, Steak ’n Shake CEO Sardar Biglari, who acquired the company in 2008, has been trying to move to beef tallow for some time.

“My boss asked, ‘Why should Europeans have better fries than Americans?’” Edwards said. “My boss said one day that we need to RFK the fries. So, a verb was invented.”

As for the company’s sudden shift on social media, Edwards said the posts “sometimes are aspirational,” noting that “sometimes we refer to space or Mars.”

“NASA and Musk/SpaceX are the only two viable players in the area. We have referred to both,” Edwards said. “Regardless of politics, we admire Musk’s accomplishments.”

In February, Tesla wrote on X that it had signed a deal to build charging stations at several Steak ’n Shake locations after the fast food joint responded to Musk’s compliment on its fries. Edwards said discussions with Tesla and Steak ’n Shake started more than 18 months ago.

Steak ’n Shake’s shift hasn’t been entirely smooth. The Bulwark reported that the chain’s move inspired some in the MAHA world to look deeper at the company’s food practices, finding that its fries were precooked in seed oils. The company later acknowledged on its website that some of its foods arrived at locations prefried, and that the initial frying had been in seed oils.

However, Edwards said, because Kennedy has advocated for the removal of seed oils “completely,” the company is making a commitment to do so. And while he did not provide details as to how Hannity’s interview with Kennedy came about, he did say that when the Fox News host “calls, we answer.”

“Sean Hannity is the best. He knows the restaurant business,” he said. “We are honored Sean Hannity and Secretary Kennedy visited Steak ’n Shake.”

Flagging global sales and Elon Musk’s increasingly outspoken political activities are combining to rock the value of Tesla.

Shares in the once-trillion-dollar company saw their worst day in five years this week. Year to date, Tesla’s stock has plunged 41% — though it is still up by about 36% over the past 12 months.

On Monday, the stock was down another 5%.

For Musk, Tesla’s shares remain his primary source of paper wealth, though he has also turned his stake in SpaceX into a personal lending tool. But it was proceeds from selling Tesla shares that helped Musk complete his acquisition of Twitter, now known as X.

Musk’s wealth also allowed him to help vault Donald Trump into a second presidential term. Even as Musk’s net worth has diminished as a result of Tesla’s recent share-price declines, data suggests he is in no danger of losing his title as the world’s wealthiest person.

Musk has said on X that he is not concerned about Tesla’s recent drop in value. Still, evidence suggests the company is entering a period of transition.

A spokesperson for Tesla did not respond to a request for comment.

Musk’s wealth has propelled him to a global presence that lacks precedent — and has polarized world opinion about the tech entrepreneur in the process. Any weakening of his financial position, therefore, could undercut his influence in the political and tech spaces where he now commands outsize attention.According to Bank of America, Tesla’s European sales plummeted by about 50% in January compared with the same month a year prior.

Some say this is attributable to a growing distaste for Musk, who has begun dabbling in the continent’s politics in the wake of his successful support of Trump’s candidacy last year.

Others note Tesla’s European market is facing increased competition from the Chinese electric-vehicle maker BYD, which has telegraphed ambitious plans for expansion on the continent.  

A more decisive blow to Tesla’s near-term fortunes may be emanating from China itself. There, Tesla’s shipments plunged 49% in February from a year earlier, to just 30,688 vehicles, according to official data cited by Bloomberg News. That’s the lowest monthly figure registered since July 2022 — amid the throes of Covid-19 — when it shipped just 28,217 EVs, Bloomberg said.