Tesla Stock Plummets, Erasing 91% Gain Since Trump’s Election Victory

Tesla stock has dropped below pre-election prices, erasing a 91% gain due to wider market concerns and an analyst’s prediction of declining vehicle deliveries. The company’s stock fell about 8% to $241, with shares struggling as part of a larger market downturn and increasing scrutiny on Musk’s political activities.

Tesla’s stock has significantly declined, falling below pre-election prices from November 2020. This drop erases a 91% gain previously enjoyed by the company, as concerns grow over the broader stock market trends correlated with Trump’s economic policies. As of Monday morning, Tesla shares declined about 8% to $241, marking their lowest point since November 4, 2020.

This decline in Tesla’s share price is consistent with a larger market downturn, particularly within the tech-centered Nasdaq Composite, which dropped nearly 3% and entered correction territory. An influential factor in the decline of Tesla shares is UBS analyst Joseph Spak’s report predicting a 5% decrease in Tesla’s vehicle deliveries for 2025, contradicting the expected 12% growth forecast.

Currently, Tesla’s stock value is down more than 50% from its peak in December. This previous surge was attributed to the anticipated supportive policies from the Trump administration towards Tesla, which has since shifted. Musk’s net worth is also impacted, dropping to about $330 billion, down $134 billion from his peak of $464 billion in December, while still retaining a significant margin over other billionaires.

Musk has been actively involved in Trump’s administration as head of the Department of Government Efficiency (DOGE), focusing on cost-reduction measures. Tesla’s reliance on global markets and components is highlighted by its exposure to tariffs and its dependence on parts sourced from Canada, China, and Mexico. Additionally, reports of decreasing sales in key markets like China and Europe raise concerns over how Musk’s political advocacy could affect Tesla’s brand integrity.

Tesla’s stock has seen a dramatic decline, erasing previous gains due to a combination of market trends and specific negative forecasts regarding vehicle deliveries. This has also impacted Elon Musk’s personal fortune significantly. As Musk continues to navigate political ties while managing Tesla amidst challenging market conditions, the company faces hurdles that could affect its future performance.

Original Source: www.forbes.com