Tesla Stock Plummets Below Pre-Election Levels, Erasing 91% Gain

Tesla stock has recently dipped below pre-election prices, eliminating a once 91% gain after President Trump’s victory. Concerns regarding Trump’s economic policies and a downgrade on delivery forecasts have contributed to an 8% drop in shares. This decline positions Tesla amidst broader market losses and reflects significant ramifications for CEO Elon Musk, whose net worth has decreased markedly alongside the falling stock value.

Tesla stock recently traded below pre-election levels, erasing a significant 91% gain previously achieved following President Donald Trump’s victory. This downturn reflects not only company-specific issues but also broader market concerns related to Trump’s economic policies and their impact on technology stocks, particularly as the Nasdaq Composite index fell nearly 3% and entered a correction phase.

Shares of Tesla plummeted approximately 8%, reaching $241, marking their lowest price since November 4. This sharp decline was exacerbated by a downgrade from UBS analyst Joseph Spak, who projected a 5% drop in Tesla’s 2025 vehicle deliveries, contradicting the consensus expectation of 12% growth this year. This would signify two consecutive years of negative growth for the company.

Overall, Tesla’s stock is down over 50% from its peak in December when it benefited from favorable expectations regarding Trump’s policies. Notably, Elon Musk’s net worth decreased by $12 billion after the drop in stock price, now sitting at $330 billion, a stark reduction from his historic high of $464 billion.

Musk, a prominent supporter of Trump with a donation of $288 million to the GOP, has also been actively involved in a government efficiency initiative aimed at reducing costs and employee numbers. However, Tesla faces challenges due to tariffs, as China is its second-largest market and its supply chain includes components from Canada, China, and Mexico. Additionally, there are reports of weakened sales in Europe and China as analysts suggest that Musk’s political statements may negatively impact Tesla’s brand reputation.

The recent downturn in Tesla stock reflects ongoing apprehensions regarding the economic policies of the Trump administration, with specific concerns about vehicle delivery projections and market conditions leading to significant financial losses for both the company and its executives. The broader implications suggest potential challenges for Tesla in navigating political and economic landscapes that could affect its growth and sales moving forward.

Original Source: www.forbes.com