Tesla’s shares, the US electric automotive industry, fell by more than 15%, sweeping the profits the company had seen after the US presidential election in November.
The sharp decline came after a reduced delivery provision by an analyst, who further put down pressure on the price of shares.
Tesla’s stock had risen after President Donald Trump’s victory, culminating in mid -December, when his value was almost twice the election day. However, the stock has been in a steady decline since then, with the decline accelerating in recent weeks.
Tesla’s performance in 2024 also saw a worrying trend, as the company finished the year with the first reduction in deliveries in more than a decade, despite previous Elon Musk growth forecasts.
The Musk continued to capture investors promises to discover self-driving and humanoid robots, although success in these areas remains uncertain.
Tesla’s market capitalization reached $ 1.5 trillion in mid -December, with shares negotiating about $ 480, but the recent decline has seen the stock decrease to about $ 222, reducing the company’s value to about $ 715 billion.
In contrast, traditional US car manufacturers, such as Ford and General Motors, are valued at $ 40 billion and $ 48 billion, respectively.
Elon Musk’s personal wealth is deeply linked to Tesla’s shares. The billionaire uses his shares as securing loans, which means that a significant decline in shares price could lead to financial challenges for Musk.
Bloomberg appreciates the net value of Musk in about $ 300 billion, making it the richest man in the world.
Tesla’s close links with Trump’s administration, with Musk serving as costs for the US government, initially led some market observers assuming that the company could benefit from the president’s influence.
On the other hand, US President Donald Trump announced on March 11, 2025, that he will buy a “brand new Tesla” to show his support for Tesla Elon Musk CEO, who was an important donor and consultant.
Trump expressed his admiration for Musk’s efforts to help the nation, inviting the key element in trying to “make America again”.
In a post on the social platform of truth, Trump accused the “radical left” to try to harm both Musk and Tesla, claiming that they were trying to boycott the automotive industry.
Trump’s statement comes as a Musk, which is currently headed by the Doge Department, has led a campaign to reduce the spending of the federal government and the labor capabilities of the services.
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