Tesla’s stock price plummeted by 37% on Tuesday, wiping out gains since the presidential election, as investors worry about Elon Musk’s spending time in Washington and his ties to right-wing politics. The decline has pulled Tesla’s market value below $1 trillion, threatening Musk’s status as the world’s richest person.
Musk’s involvement in politics is seen as alienating buyers, particularly in Europe, where Tesla sales have fallen 50% from last year due to increasing competition from European and Chinese automakers offering affordable electric models. The company’s attempts to cut prices on its popular Model 3 and Model Y vehicles have also reduced profit margins.
Analysts say the decline is a return to pre-election levels and suggest that Musk’s political activities may be affecting Tesla’s brand image, particularly in Europe. While it’s too early to determine the impact of Musk’s politics on sales, investors are growing concerned about the company’s ability to maintain its market share.
Tesla had forecast growth in vehicle sales this year, but recent data suggests a decline instead. The company must now address these concerns and develop a plan to halt the erosion of market share, or risk losing more investors and customers.
Source: https://www.nytimes.com/2025/02/25/business/tesla-stock-elon-musk-trump.html