Tesla’s stock has dropped 8%, erasing a 91% gain post-Trump’s election, reaching a low since November 4. UBS predicts a decline in Tesla’s 2025 vehicle deliveries, conflicting with growth forecasts. Elon Musk’s net worth has fallen sharply, highlighting broader implications of Trump’s economic policies on the company.
Tesla’s stock experienced a significant downturn, falling about 8% to $241, effectively erasing a formerly substantial 91% gain tied to President Donald Trump’s election victory. This decline marks the lowest trading price for Tesla shares since November 4, the eve of the election, and reflects broader market trends amid concerns regarding Trump’s economic policies.
The catalyst for Tesla’s recent descent was a note from UBS analyst Joseph Spak, forecasting a 5% decline in Tesla’s 2025 vehicle deliveries. This revelation contradicts prevailing analyst expectations for a 12% growth rate in vehicle deliveries, indicating a worrying trend of negative growth for the company for two consecutive years.
Tesla’s stock has plummeted more than 50% from its peak in December, driven initially by the anticipation of favorable Trump administration policies. Additionally, Tesla’s largest shareholder, Elon Musk, has seen a dramatic decrease in his net worth, falling by $134 billion from his highest recorded wealth of $464 billion. Musk’s fortune decreased by $12 billion on the day of the stock drop, underscoring the stock’s impact on his overall wealth.
As a significant donor to GOP election efforts, Musk is influenced by Trump’s economic agenda, particularly regarding tariffs that affect Tesla’s operations worldwide. The company faces challenges, including lower sales forecasts in China and Europe and potential image issues due to Musk’s political engagements. These elements collectively contribute to Tesla’s struggles in maintaining its stock performance and market reputation.
In summary, Tesla’s stock has significantly declined, erasing previously achieved gains tied to Trump’s election, amidst concerns over the company’s future vehicle deliveries. The stock’s drop is compounded by Elon Musk’s decreased net worth and the broader implications of Trump’s economic policies on Tesla. Furthermore, challenges stemming from tariffs and reduced sales forecasts appear to threaten Tesla’s brand and financial stability going forward.
Original Source: www.forbes.com
