Tesla Stock Experiences Significant Decline, Erases Election Gains

Tesla shares have dropped below pre-election levels, wiping out a 91% gain as concerns mount surrounding Trump’s economic policies. Analyst projections suggest a decline in vehicle deliveries, exacerbating the company’s stock fall, while Musk’s net worth has decreased considerably amid these challenges.

Tesla’s stock has fallen below its pre-election price for the first time since Donald Trump’s victory, erasing a substantial 91% gain during the period. The company’s shares declined approximately 8% to $241, marking the lowest price since November 4, the day before the election results were declared. The drop in Tesla’s stock reflects broader market concerns linked to Trump’s economic policies, with the Nasdaq Composite experiencing a nearly 3% decline and entering a 10% correction phase.

Analyst Joseph Spak from UBS has contributed to Tesla’s stock decline by projecting a 5% decrease in 2025 vehicle deliveries. This forecast indicates that Tesla may face its second consecutive year of negative growth, contrary to prevailing expectations of a 12% increase this year. Overall, Tesla’s stock has dropped more than 50% from its peak in December, a period that was buoyed by expectations of favorable policies from the Trump administration.

Elon Musk’s net worth has significantly decreased as a result of these stock declines, plummeting by $134 billion from a record high of $464 billion in December. Despite this substantial drop in wealth, Musk remains significantly wealthier than any other individual, with a net worth around $120 billion. On Monday alone, Musk experienced a loss of $12 billion as Tesla shares fell.

Musk has been heavily involved in Trump’s administration, contributing $288 million towards Trump and other GOP election initiatives. As the head of the Department of Government Efficiency (DOGE), he has also focused on cost-cutting measures and government employee reductions. Tesla, as a company significantly impacted by Trump’s tariffs, faces escalating challenges, particularly with lower-than-expected sales in China and Europe, as analysts caution that Musk’s political stance may adversely affect Tesla’s brand reputation.

In summary, Tesla’s stock is currently reflecting a significant downturn, erasing earlier gains following election expectations. The decline is attributed to broader market trends influenced by economic concerns tied to Trump’s policies, as well as disappointing forecasts regarding vehicle deliveries. Furthermore, Musk’s substantial loss in net worth underscores the direct connection between stock performance and executive influence in political spheres.

Original Source: www.forbes.com