Tesla falls again as investors bail in Elon Musk’s sudden struggle with electric car company
Tesla’s stock has fallen again as confidence in Elon Musk’s electric car company continues to collapse after the “Trump bump” after the election.
Tesla shares fell $36.66, or 14%, to $226.11 in trading Monday afternoon. It was the lowest stock in Tesla since late October, reflecting the newly discovered pessimism of investors as a global automaker’s sales crater.
Many analysts blame Musk’s stock and car sales on Musk’s support for President Donald Trump and other most suitable candidates worldwide.
Musk raised $270 million from Trump’s campaign to enter the 2024 election, appearing on the stage with him and cheering for Trump’s victory over Democratic candidate Kamala Harris in November. By mid-December, Tesla’s stock surged to $479 per share, but has since fallen back to Earth, losing 40% of its value.
After his large campaign donation, Musk has become a ruling effort by the Trump administration to cut down the administration, called the Ministry of Administration Efficiency or Road. The ministry has pledged large-scale federal workers to lay off workforces and has greatly reduced government spending.
Analysts say it doesn’t seem to get along well with potential Tesla buyers, who are often considered wealthy, environmentally conscious liberals who have turned to electric vehicles to reduce fossil fuel emissions.
Tesla’s sales are in California, the company’s largest U.S. market, which recorded its first decline in annual global sales last year.
The latest car sales figures in China show that Tesla sales there have been nearly halved since February a year ago.
Similarly, Tesla’s sales fell 45% in Europe in January, despite rising EV sales, according to research firm Jato Dynamics.
Sales figures in Germany and France were particularly bad in January, with sales dropping by about 60%, surpassing the average decline in European countries surveyed for more than second-rate European countries. Sales in France fell another 26% in February.
Protesters besieged Tesla showrooms in the United States, whose vehicles destroyed stickers on cars and used common sayings such as “I bought them before Elon went crazy.”
In addition to supporting Trump, Musk also expressed support to the far-right in Germany Y, pro-Russian anti-Muslim party, calling Britain’s Prime Minister a “evil tyrant” and calling Canada a Canadian-a major Tesla market, “not a real country.”
Tesla is not the only company led by Musk and has been in trouble recently. His X social media platform collapsed several times on Monday, with Musk blaming “massive cyberattacks.”
Last week, a large rocket launched by Musk’s SpaceX exploded and ruptured in Florida, and about two months later, another rocket from the company appeared for about two months, causing rain to the Turks and Caicos.
