Tesla The Wall Street sale escalated on Monday, with shares in the electric car maker plunging 15%, marking the worst day in the market since September 2020.
On Friday, Tesla has lost seven times in a row since making his debut at the NASDAQ in 2010. Stock has been declining weekly since CEO Elon Musk played a major role at the second Trump White House since he went to Washington, DC.
Since peaking at $479.86 on December 17th, Tesla stock has lost more than 50% of its value, wiping out more than $800 billion in market capitalization. Monday recorded its seventh worst day for stocks.
Tesla led a broader slump in US stocks, with the Nasdaq falling almost 4%, the sharpest decline since 2022.
In an interview with Fox Business outside of business hours on Monday, Musk was asked how he was able to run his business while playing his role at the Trump White House. He said he was doing that “It’s very difficult.”
In addition to Tesla’s troubles, Musk’s social network X experienced several outages throughout the day on Monday, and his aerospace and defense company SpaceX is investigating two explosion A series of occurrences occurred during test flights of large spacecraft rockets.
Musk also said in an interview that he had hoped he would remain in the Trump administration for another year. After the broadcast, he Posted on x “It’ll work out in the long run,” referring to Tesla’s sudden stock price decline.
Tesla’s stock downdraft on Monday was tied to uncertainty surrounding President Donald Trump’s tariff plans. Canada and Mexico are key markets for automotive suppliers, and increased tariffs with the potential for a trade war could impact production and lead to higher prices.
Tesla also deals with brand erosion with the political rhetoric of the Musk’s jammed Cen and extensive work with the Trump administration. Musk, the world’s wealthiest person, has become the official face of the administration’s efforts to dramatically reduce federal workforce, spending and capabilities.
Meanwhile, Musk used X to level the charges against judges who did not like the false Kremlin topic about Ukrainian President Voldy Mirzelensky.
Activists and former Musk fans have protested at Tesla facilities in the US, with Tesla vehicles and facilities being obvious targets of vandalism and attempted arson. Repeated arson and vandalism attempts and cases occurred at Tesla stores and service centers in Loveland, Colorado. Most recently, on March 7th, police told CNBC.
Baird analyst Ben Caro told CNBC’s “Squawk on the Street” on Monday that recent reports of vandalism could hurt demand.
“When people’s cars are at risk of being locked or lit, even those who support musks or those who are indifferent to them may think about buying Tesla again,” Karo said.
Analysts at Bank of America wrote in a report Monday that Tesla’s new vehicle sales plummeted around 50% in Europe from the previous year to January. The company also noted that some prospects are waiting for a new version of Model Y.
The Model Y of the Tesla, a small SUV, remained the world’s best-selling battery electric vehicle in January. The Chinese Geely Geome followed, surpassing the Tesla Model 3 sedan that month.
Global sales of electric vehicles, including fully electric and plug-in hybrid models, rose 21% in January, even if Tesla’s sales fell. According to Bank of America, growth was driven by European demand.
– CNBC’s Jesse Pound contributed to this report.
