Tesla’s stock price has plummeted by 37% from its peak in mid-December, closing at $302.80 per share on Tuesday. The decline is largely attributed to a major drop in sales abroad and a decrease in brand value due to Elon Musk’s increased involvement in politics.
Musk’s association with former President Donald Trump has led to concerns among investors, who are now recalibrating their delivery expectations for 2025. Tesla’s fourth-quarter earnings fell below analysts’ estimates, and deliveries narrowly missed the company’s own targets. The recent pullback is partly due to Musk’s increased political visibility, which has alienated some buyers.
Tesla’s efforts to deliver autonomous driving features in China have also been met with disappointment. Competition in the country’s massive auto market has intensified, with rival BYD offering similar features at a lower price. Despite this, Tesla plans to launch a revamped Model Y SUV and an interest in autonomous technology to regain investor confidence.
The company is banking on its new products and technologies to drive growth, including the upcoming ride-share service using Model Y and 3 vehicles equipped with self-driving software. However, the decline in sales abroad has pushed Tesla’s market capitalization below $1 trillion for the first time since November.
Source: https://qz.com/tesla-stock-market-cap-elon-musk-donald-trump-election-1851766498