Tesla Stock Experiences Significant Decline, Erasing Gains Since 2020 Election

Tesla’s stock has fallen below pre-election levels, erasing a 91% gain since Donald Trump’s victory. Shares dropped nearly 8% to $241, fueled by concerns over Trump’s policies and a report predicting declining vehicle deliveries. Elon Musk’s net worth has decreased significantly, while broader market losses persisted, impacting Tesla’s performance directly.

Tesla’s stock experienced a significant decline on Monday, falling below levels recorded prior to President Donald Trump’s election victory. The shares plummeted nearly 8% to $241, marking their lowest price since November 4. This downturn reflects broader market concerns regarding Trump’s economic policies, contributing to a nearly 3% drop in the Nasdaq Composite, which has now entered correction territory.

The specific decline in Tesla shares was influenced by UBS analyst Joseph Spak’s report predicting a 5% decrease in Tesla’s vehicle deliveries for 2025. This projection contradicts the consensus forecast anticipating a 12% growth for this year, signaling potentially challenging times ahead for the electric vehicle manufacturer. Tesla’s current stock value is over 50% lower than its peak, recorded in December, amid the anticipation of favorable policies under the Trump administration.

Elon Musk’s net worth has seen a substantial decrease, with an estimated loss of $12 billion attributed to this latest stock drop. Musk’s net worth is now approximately $330 billion, down from a record $464 billion. Despite this decline, he remains significantly wealthier than any other individual globally, outweighing the second-richest person by roughly $120 billion.

Musk’s political contributions, totaling $288 million toward Trump and the GOP, may have influenced public perception of Tesla. Additionally, as head of the Department of Government Efficiency (DOGE), he has concentrated on cost reduction strategies in connection with Trump’s policies. Tesla is particularly vulnerable to economic shifts, facing challenges from tariffs and reports of declining sales in its key markets such as China and Europe.

In summary, Tesla’s stock has seen a dramatic decline, reflecting a range of economic pressures and political influences. With projections for decreased vehicle deliveries and an overall dip in the stock market, the company faces considerable challenges. Elon Musk’s net worth has also suffered but remains significant by any measure. The convergence of market dynamics and Musk’s political actions may continue to impact Tesla’s brand and sales going forward.

Original Source: www.forbes.com