Tesla stock has fallen over 50% from its December high, dropping approximately 8% to $241 on Monday, the lowest since Trump’s election. Concerns about Trump’s economic policies, a negative forecast on vehicle deliveries by UBS, and lower sales figures in international markets contribute to this decline, impacting Musk’s net worth significantly.
Tesla stock has experienced a significant downturn, trading lower than its position prior to President Donald Trump’s election victory. The shares have erased a substantial 91% gain, dropping approximately 8% to $241 by mid-morning, marking the lowest trading price since November 4, just before the election.
This decline in Tesla’s stock price is part of a broader downturn in the market, particularly affecting the tech-heavy Nasdaq Composite, which fell nearly 3% and entered a 10% correction phase. Investors express concerns regarding Trump’s economic policies, which are now seen as detrimental to businesses like Tesla.
Specific to Tesla, a report by UBS analyst Joseph Spak predicted a 5% decrease in vehicle deliveries for 2025. This forecast runs counter to previous analyst expectations of 12% growth this year and represents the second consecutive year of negative growth for Tesla.
In the context of Tesla’s stock drop, Elon Musk’s net worth has decreased significantly. Musk’s fortune has diminished by approximately $134 billion from its peak of $464 billion in December, with a reported $12 billion loss occurring on Monday alone. Despite these losses, he remains the wealthiest individual globally, exceeding the net worth of his closest competitor by about $120 billion.
Musk’s political contributions and active role in the Department of Government Efficiency (DOGE) under Trump may have influenced the market’s perception of Tesla. The company is heavily impacted by Trump’s tariffs, particularly given its reliance on international parts and China as a crucial market. Moreover, reports indicate lower sales figures for 2025 in Europe and China, compounded by concerns that Musk’s public political stance is adversely affecting Tesla’s brand image.
In summary, Tesla stock has seen a substantial decline, erasing previously substantial gains amid broader market concerns linked to Trump’s policies. Predictive analyses of decreasing vehicle deliveries further exacerbate the situation, as Elon Musk’s net worth continues to alter dramatically. The impact of political contributions and tariffs on Tesla’s operations cannot be understated, indicating a complex interplay between corporate performance and political landscapes.
Original Source: www.forbes.com
