Tesla Stock Erodes Gains Amid Market Concerns and Delivery Forecasts

Tesla’s stock has dropped below pre-election levels, erasing a 91% gain since Trump’s victory. Shares recently hit their lowest price since November due to broader market concerns, unmet delivery expectations, and Musk’s political activities. His net worth has also significantly decreased as Tesla shares decline.

Tesla’s stock recently fell below its pre-election level in November, erasing a remarkable 91% gain that occurred after President Donald Trump’s victory. As of Monday, shares dropped approximately 8% to $241, marking the lowest price recorded since November 4, just before the election.

The decline in Tesla shares coincides with broader market losses influenced by concerns regarding Trump’s economic policies. The Nasdaq Composite fell nearly 3%, entering correction territory as investor anxiety grows.

A significant factor in Tesla’s stock decline stems from UBS analyst Joseph Spak’s note predicting a 5% decrease in Tesla’s vehicle deliveries for 2025. This projection indicates a potential second consecutive year of negative growth for the company, contrasting sharply with the consensus forecast of a 12% increase in deliveries this year.

Currently, Tesla’s stock has plummeted more than 50% from its all-time high in December when optimism surrounding favorable Trump administration policies spurred its rise. Elon Musk, Tesla’s largest shareholder, has witnessed a decrease in his net worth, which is now $134 billion lower than its peak of $464 billion in December 2021.

Musk has actively contributed $288 million to Trump and Republican efforts, while also serving as the head of the newly established Department of Government Efficiency (DOGE). The company’s operations face challenges due to Trump’s tariffs, impacting their influence in China, their second-largest market. Additionally, Tesla has experienced reduced sales in China and Europe, raising concerns over the potential detrimental effects of Musk’s political stances on Tesla’s brand reputation.

In summary, Tesla’s stock has been significantly affected by market volatility, concerns about economic policies following Trump’s election, and lowered delivery forecasts. The company’s shares have lost substantial value, profoundly impacting Elon Musk’s net worth. As Tesla navigates its relationship with international markets and the implications of tariffs, its stock performance remains under scrutiny.

Original Source: www.forbes.com