Tesla’s stock has declined to levels lower than before Trump’s election victory, erasing a 91% gain. The shares fell around 8% to $241, amid broader market losses and negative forecasts on vehicle deliveries. Elon Musk’s wealth has also decreased significantly as a result of this downturn.
Tesla’s stock has experienced a significant decline, officially trading lower than it did prior to President Donald Trump’s November victory. This downturn has erased a previous 91% gain for the electric vehicle manufacturer, led by Elon Musk. Tesla is now emblematic of the current stock market downturn, reflecting broader economic concerns.
On Monday, Tesla shares fell approximately 8%, reaching $241, marking their lowest valuation since November 4. The decline aligns with a broader market trend where the tech-heavy Nasdaq Composite plummeted nearly 3%, entering a 10% correction period, primarily fueled by apprehensions surrounding Trump’s economic policies.
Adding to the downward pressure on Tesla’s stock was a report from UBS analyst Joseph Spak, predicting a 5% decline in vehicle deliveries for 2025. This anticipated reduction signifies a worrying trend, as it would represent the second consecutive year of negative growth for Tesla, contradicting the general expectation of a 12% increase in vehicle deliveries for the current year.
The stock has dropped over 50% from its peak in December, during which optimism around Trump’s favorable administration policies elevated its price. This decline has had sizeable repercussions on Elon Musk’s wealth, which fell by $12 billion on the same day Tesla shares dropped.
In summary, Tesla’s stock has faced substantial losses, erasing most of its gains since Trump’s election victory. The company’s challenges stem from a combination of negative market conditions, analysts’ revised projections for vehicle deliveries, and concerns about Musk’s political engagements affecting brand perception. The significant drop in both share price and Musk’s net worth illustrates the volatility of the electric vehicle market amid evolving economic landscapes.
Original Source: www.forbes.com
