Tesla Stock Declines Erase 91% Gain Amid Market Concerns and Delivery Forecasts

Tesla’s stock plummeted, erasing a 91% gain and trading lower than pre-election levels. Shares fell by 8% to $241, marking their lowest since November 4. This decline is influenced by concerns over Trump’s economic policies and a UBS report forecasting reduced vehicle deliveries. Musk’s net worth has also dropped substantially alongside the stock’s decline.

Tesla’s stock experienced a significant decline on Monday, trading lower than its pre-election value. The shares have now erased a previous gain of 91%, with a decrease of approximately 8%, bringing the price down to $241. This marks Tesla’s lowest share price since November 4, the day before the presidential election, amidst an overall downturn in the stock market.

The decline in Tesla’s share price is part of a larger trend affecting the Nasdaq Composite, which dropped nearly 3% and has entered correction territory. Concerns regarding President Trump’s economic policies largely contribute to these losses. Additionally, a report from UBS analyst Joseph Spak projected a 5% decrease in Tesla’s vehicle deliveries for 2025, contrasting sharply with the consensus expectation of 12% growth, adding further pressure on the stock.

Since reaching its all-time high in December, Tesla’s stock has fallen over 50%. The surge seen at the end of last year was spurred by the anticipation of favorable policies under the Trump administration, impacting highly regulated industries like Tesla’s.

Musk’s net worth has also taken a hit, declining by $134 billion from its peak of $464 billion in December, following Tesla’s stock plunge. Currently, Musk retains a net worth of approximately $330 billion, which keeps him significantly wealthier than any other individual globally, despite a $12 billion loss from Monday’s decline.

Musk, who has contributed $288 million to Trump and other GOP initiatives, has been focusing on his role within the Department of Government Efficiency (DOGE), a position aimed at overseeing cost-cutting measures. Furthermore, Tesla faces considerable risks from tariffs that affect its operations, particularly as China remains a vital market. Reports indicating decreased sales in both China and Europe, alongside concerns over Musk’s political stance, are harming Tesla’s brand reputation.

In conclusion, Tesla has endured a notable stock decline, erasing significant gains since the election of Donald Trump. The company’s challenges, compounded by negative delivery forecasts and broader market concerns, have resulted in detrimental financial repercussions for Elon Musk. As Musk navigates his political affiliations and the implications of government policies, Tesla’s future performance remains precarious amidst potential brand reputation risks and market fluctuations.

Original Source: www.forbes.com