Tesla’s stock has taken a significant hit recently, falling below its previous levels from before Donald Trump won the presidency in November. The electric vehicle company’s shares are down about 8% to $241, marking their lowest point since early November.
This decline isn’t just about Tesla. The stock market overall is struggling. The tech-heavy Nasdaq Composite dropped nearly 3%, indicating fears about Trump’s economic policies and how they could affect businesses.
Specifically for Tesla, UBS analyst Joseph Spak has forecasted a drop in vehicle deliveries for 2025, predicting a 5% decrease. This is a major shift from previous expectations of 12% growth this year. If this prediction holds true, it would mark the second straight year of declining deliveries for Tesla, which has investors concerned.
Currently, Tesla’s stock price has plummeted over 50% from its peak in December. Back then, the company’s shares soared on the hope of favorable policies under a Trump administration.
As for Elon Musk, who is Tesla’s top shareholder, his wealth has also significantly decreased. His net worth has dropped by $134 billion from a record high of $464 billion, making him $120 billion richer than anyone else in the world. On the same day Tesla’s stock fell, Musk lost $12 billion.
Musk has been actively involved in political donations, notably contributing $288 million to Trump and other Republican efforts. Currently, he heads a commission focused on government efficiency, which includes overseeing cuts to spending and workforce. Tesla is particularly affected by Trump’s tariffs because China is its second-largest market and the company relies on parts from various countries.
Challenges aren’t just coming from politics. Reports show that Tesla’s sales in China and Europe have dropped, with analysts suggesting that Musk’s political involvement could hurt the company’s brand image.
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