Tesla Stock Faces Dramatic Decline Following Election Rally Collapse

Tesla’s stock has dropped significantly post-election, reflecting a 91% loss from its peak. Currently priced at $241, the shares are at a low not seen since before Election Day. Concerns arise from a UBS report predicting negative delivery growth, compounded by geopolitical factors affecting the company’s market reputation and Musk’s substantial financial losses.

Tesla’s stock has seen a significant decline, trading lower than its pre-election levels following President Donald Trump’s victory. The shares now reflect a staggering loss of 91%, plummeting about 8% to $241, marking the lowest point since November 4, the day before the election. This downturn highlights Tesla’s vulnerability amidst a broader stock market decline tied to economic concerns regarding Trump’s policies.

The recent drop was exacerbated by a report from UBS analyst Joseph Spak, who projected a 5% decline in Tesla’s vehicle deliveries for 2025. This would signify a second consecutive year of negative growth, contradicting the consensus forecast of 12% growth for the current year. Investors have reacted negatively as Tesla’s stock has fallen over 50% since its all-time high in December, when optimism about supportive Trump administration policies had propelled its value.

Elon Musk’s net worth has also seen a dramatic decrease, now standing at approximately $330 billion—down from a peak of $464 billion. This equates to a decline of $134 billion, further compounded by a $12 billion drop on Monday alone due to Tesla’s stock performance. Despite the losses, Musk continues to maintain a significant lead as the wealthiest individual globally.

Musk has invested substantially in Republican electoral efforts, contributing $288 million to Trump and GOP initiatives. Furthermore, as the head of the Department of Government Efficiency (DOGE), a commission established by Trump for overseeing budget cuts, Musk’s link to the political sphere raises concerns about how his outspoken views may impact Tesla’s reputation and sales, particularly in critical markets like China and Europe.

Tesla’s recent stock decline reflects broader market instability and specific concerns about the company’s future vehicle deliveries. The report predicting negative growth has intensified scrutiny on Musk’s role in both the company and politics, as his wealth has notably diminished alongside the stock’s depreciation. The ongoing relationship between Tesla’s performance and political developments remains a critical point for investors and analysts alike.

Original Source: www.forbes.com