Shares of Tesla have seen a sharp decline, virtually wiping out gains made following the election of Donald J. Trump due to concerns surrounding CEO Elon Musk’s political activities and focus on Washington. Investors, once hopeful for regulatory benefits under the Trump administration, are worried that Musk’s involvement in politics and spending too much time in Washington are negatively impacting Tesla’s sales and market share in the US, Europe, and China. Tesla’s market value has dropped below $1 trillion, risking Musk’s status as the richest person in the world as much of his wealth is tied up in Tesla stock. The stock closed at $302.80, the lowest since the election, down 37% from its peak in December. The decline was partly driven by a 50% drop in European sales in January, despite the overall electric vehicle market growth. Tesla’s recent performance has led some investors, such as Gary Black of the Future Fund, to express concerns about the company’s prospects. Despite disappointing sales and price cuts for its vehicles, some investors still hold on to hope for a recovery in Tesla’s stock, with expectations of reaching $380 in the next six to 12 months. This recent decline has highlighted the uncertainty surrounding Tesla and its future prospects, raising questions about its ability to recover and regain investor confidence.
Note: The image is for illustrative purposes only and is not the original image of the presented article.
