Tesla stock has plummeted 8% to $241, below pre-election levels, erasing a 91% gain. This decline follows concerns about Trump’s economic policies and a UBS report predicting a 5% drop in 2025 vehicle deliveries. Musk’s net worth decreased by $12 billion amid the stock drop, highlighting the impact of these market dynamics.
Tesla’s stock has seen a dramatic decline, trading below pre-election levels from November following President Trump’s victory. Once boasting a 91% gain, shares dropped approximately 8% to $241, marking the lowest price since November 4. This downturn is reflective of broader market trends, particularly as concerns grow regarding Trump’s economic policies which contributed to a nearly 3% drop in the Nasdaq Composite, now down 10%.
A UBS analyst’s report predicting a 5% decline in Tesla’s vehicle deliveries for 2025 has exacerbated the situation, suggesting a second year of negative growth contrary to the anticipated 12% growth. Tesla’s stock has plummeted over 50% from its previous all-time high in December, influenced by favorable administration policies at that time.
Musk’s net worth has also been significantly impacted, dropping to $330 billion, reflecting a $134 billion decrease since the peak of $464 billion. Despite this loss, he remains the wealthiest individual worldwide, with a $120 billion lead over the next richest person. On Monday alone, Musk’s wealth fell by $12 billion amidst the stock plunge.
As a significant donor to Trump’s campaigns, Musk holds a critical role as head of the Department of Government Efficiency (DOGE), a body overseeing government cost-cutting efforts. However, Tesla is heavily influenced by Trump’s tariffs since China, a vital market, and parts sourced from Canada and Mexico are crucial to its operations. Sales to both China and Europe for 2025 have reportedly declined, and analysts suggest Musk’s political stances may harm Tesla’s brand reputation.
In summary, Tesla’s stock has retraced to pre-election levels, erasing substantial gains seen after Trump’s victory. Concerns over economic policies and revised delivery forecasts have alarmed investors, resulting in significant price drops and substantial losses for Elon Musk. As the automaker navigates market challenges and political implications, its performance remains a key focus for analysts and stakeholders.
Original Source: www.forbes.com
