Tesla shares fell 15% on Monday, making the EV company the worst trading date since September 2020. It’s the latest deal in a series of ongoing losses, and Tesla’s stock has fallen in seven weeks since President Donald Trump took office.
More than 50% of Tesla’s stock’s value has been erased since December 17 last year, with an all-time high of $479.86, when the stock was now $222.15 when the market closed last Monday. That removed about $800 billion from the company’s value, causing Tesla to lose its status as a trillion dollar company last month.
Tesla used cars are everywhere
Still, Tesla CEO and Close Trump Ally Elon Musk don’t seem to think anything needs to be changed. In response to Tesla’s stock decline in its post on X, the billionaire simply claimed that it was “long-term” but did not provide further details.
Musk’s split is focused on reasons that some investors and market analysts are concerned, especially as he strives to work with the Trump administration of the Department of Administration Efficiency (DOGE). In addition to Tesla, Musk is also the CEO of SpaceX, the owner of SpaceX, the founder of Boring Company X, and the co-founder of Neuralink.
Mixable light speed
Musk said in an interview with Fox Business on Monday that he was operating various businesses when it was “very difficult” with the Trump administration, but he hoped his partnership with Doge would last for a year.
Currently, investors are not the only ones who are skeptical of Tesla. Tesla’s own board members have abandoned millions of shares over the past few months, which has not inspired their confidence in their ability to turn the company’s fortunes. CFO Vaibhav Taneja has sold more than $8 million in Tesla shares since January, while Chairman Robyn Denholm has sold more than $115 million in shares since December. Board members and Musk’s brother Kimbal also sold Tesla shares last month, worth nearly $28 million.
Tesla is in a tough time right now. Although his stock price initially soared after Trump’s election victory, all of these gains have since been eliminated. As global sales plummet, electric car companies appear to be in a downward spiral, and even the prices of Tesla used are falling. Drivers are reportedly rejecting Tesla due to Tesla’s association with Musk, which could lead to a 70% drop in profits in the fourth quarter of 2024.
There hasn’t even been a mention of the protests against CEO Elon Musk taking place outside Tesla’s showrooms nationwide, and people even booed Tesla Cybertruck in a carnival parade in New Orleans. At this point, Tesla’s connection with Musk may do more harm than good.
