Since Donald Trump won the presidency, Tesla’s stock has been on a wild ride. Many investors believed that Elon Musk’s support for Trump would lead to better opportunities for Tesla. However, this belief quickly shifted after a significant drop in Tesla’s stock on Tuesday, which fell by 8%. This decline raised concerns that Musk’s political activities may be distracting him from his responsibilities at Tesla.
With sales dipping, investors worry that Musk’s time spent in Washington may not be helping the company as expected. His recent endorsement of a far-right party in Germany also raised eyebrows, leading some customers to feel disconnected from the brand. Even among Republicans, there are growing worries about Musk’s aggressive cost-cutting strategies that target government spending.
This latest plunge in stock value, which has now brought Tesla’s market value below $1 trillion, puts Musk’s position as the richest person in the world at risk since much of his wealth is tied up in Tesla shares. The downturn has left investors and employees uneasy, especially since Musk hasn’t shared a clear plan to tackle Tesla’s declining market share in crucial areas like the U.S., Europe, and China.
On Tuesday, Tesla shares closed at $302.80, the lowest since shortly after the election. This marks a 37% drop from their peak of $479.86 in December. One reason for the stock’s fall is a drastic 50% decrease in Tesla’s sales in Europe compared to the previous year, while the overall electric vehicle market in the region grew by 34%. This disparity raises questions about Tesla’s performance and future strategies in a competitive market.
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Source linkElectric and Hybrid Vehicles,United States Politics and Government,Automobiles,Musk, Elon,Trump, Donald J,Tesla Motors Inc,Stocks and Bonds,High Net Worth Individuals
