Tesla stock has fallen below pre-election prices, erasing a 91% gain, as shares drop to $241. This decline is attributed to broader market losses and a negative forecast on vehicle deliveries. Musk’s net worth has also decreased significantly, though he retains his position as the richest individual worldwide despite economic challenges.
Tesla stock has experienced a significant decline, officially trading lower than prior to President Donald Trump’s election victory, thus eradicating a previous 91% gain. The shares fell approximately 8% to $241, marking their lowest price since November 4, preceding the election, and mirroring a broader downward trend in the stock market, notably affecting the tech-heavy Nasdaq Composite, which plummeted nearly 3%.
This decrease in Tesla’s stock price was exacerbated by a bearish projection from UBS analyst Joseph Spak, predicting a 5% decline in Tesla’s vehicle deliveries in 2025, against the consensus analyst forecast of 12% growth for the current year. Tesla’s stock has now diminished by over 50% from its peak value established in December, when favorable Trump administration policies were anticipated for the highly regulated automotive company.
Elon Musk, Tesla’s predominant shareholder, has witnessed a decline of $134 billion in net worth, now at $330 billion—down from a record high of $464 billion in December. Following Monday’s stock decline, Musk’s wealth dropped by $12 billion but he still retains a substantial lead in net worth over any other individual globally, being approximately $120 billion ahead.
Musk has engaged in significant political donations, contributing $288 million to Trump and various GOP electoral efforts. Furthermore, he chairs the Department of Government Efficiency (DOGE), a Trump-initiated body aimed at reducing government expenditure and workforce. Tesla’s operations have also been adversely impacted by tariffs imposed by Trump’s administration, given that China is a critical market, and the company’s supply chain encompasses components from Canada, China, and Mexico. Additionally, reports suggest a notable decline in sales in both China and Europe, with analysts cautioning that Musk’s political statements may be adversely affecting Tesla’s brand image.
In summary, Tesla stock has faced a drastic downturn following economic policy concerns linked to Trump’s administration, resulting in significant losses for Elon Musk. Reports of declining vehicle deliveries and potential sales reductions in key markets have further contributed to the company’s struggles. As a result, Musk’s wealth has significantly decreased, although he remains the wealthiest individual globally.
Original Source: www.forbes.com
