Tesla’s stock has declined by 50% since Elon Musk joined the Trump administration, sparking concerns about his political influence.
Tesla, the well-known electric vehicle company, has faced a significant drop in its stock value recently.
Since Elon Musk became involved with the Trump administration, Tesla shares have lost more than half of their value.
This decline has raised concerns among investors and analysts.
Tesla shares have declined by half their value since Musk became involved with Trump administration
On a recent Monday, Tesla shares fell by 15%, marking one of the worst days for the company since September 2020.
This downturn led to a seven-week losing streak for the stock, which is the longest since Tesla went public in 2010.
The stock peaked at $479.86 on December 17 but has seen a steady decline since then.
Impact of tariff proposals
One major factor contributing to the drop in Tesla’s stock price is uncertainty surrounding President Trump’s tariff proposals.
These tariffs could greatly affect Tesla’s production costs, especially since Canada and Mexico are vital markets for parts and supplies.
Investors worry that increased tariffs might lead to higher prices for consumers and affect overall sales.
Political role of Elon Musk
Elon Musk, the CEO of Tesla, has taken on a prominent role in the Trump administration as head of the Department of Government Efficiency.
This political involvement has drawn criticism and may have affected Tesla’s public image.
Many analysts believe that Musk’s controversial statements and actions have not helped the company’s standing in the market.
Vandalism and protests have also affected Tesla’s reputation.
In addition to political issues, Tesla has faced problems with vandalism and protests.
Some former supporters of Musk have taken to the streets to express their dissatisfaction.
Incidents of vandalism, including arson attempts at Tesla facilities, have occurred in various locations.
These actions have raised concerns about safety and could potentially impact demand for Tesla vehicles.
Analysts weigh in on the decline of Tesla’s shares
Experts have analyzed the situation and provided insights.
Some believe that the negative publicity surrounding Musk and the Trump administration could be affecting consumer perceptions of the Tesla brand.
Baird analyst Ben Kallo noted that vandalism could deter potential buyers.
If consumers feel that their vehicles could be targeted, they might think twice before purchasing a Tesla.
Tesla has experienced a significant drop in sales.
Recent reports from Bank of America indicate that Tesla’s sales in Europe have dropped nearly 50% compared to the same time last year.
This decline is concerning for the company, especially as it seeks to expand its market presence.
The reported decrease in sales may reflect growing distaste for the brand among European consumers.
Despite the challenges, Tesla’s Model Y continues to perform well in the market.
In January, it was the best-selling battery electric vehicle worldwide.
However, some potential buyers are waiting for updates on the Model Y before making a purchase.
This hesitation could further impact Tesla’s sales figures in the future.