Elon Musk’s Tesla saw a tremendous sell-off on Wall Street on Monday. Tesla, the EV makers stock dropped 15.4%, marking it the worst day in years. The slide in Tesla share price that the confidence in Elon Musk’s electric car company continues to disintegrate post-election. The stock has fallen every week since CEO Elon Musk went to Washington, D.C., to take on a major role in the second Trump White House.
Tesla has seen losses for the past seven weeks making it the longest losing streak since its debut in 2010 on Nasdaq. Tesla shares tumbled 15.4%, to $222.15, reflecting the pessimism around it by the investors as its sales dipped around the globe. Monday’s decline, Tesla’s steepest since September 2020, came with Wall Street in the midst of a sell-off caused by uncertainty over the Trump administration’s trade policies.
Tesla stock market turmoil
On December 17, Tesla was at its highest ever at $479.86. Today, Tesla share price has lost more than 50% of their value. Tesla’s market value has decline more than $800 billion. This Monday was Tesla stock’s seventh worst day on record.
Tesla led a broader slump in U.S. equities, with the Nasdaq tumbling almost 4%, its steepest decline since 2022.
Outage on X
To add to Tesla’s troubles and stock fall, Elon Musk’s social network X experienced several outages throughout the day on Monday. Also, SpaceX, his aerospace and defense company is investigating two explosions in a row that occurred during test flights of its massive Starship rocket.
Why is Tesla stock falling?
Tesla stock falling by 14% on Monday was tied to uncertainty surrounding President Donald Trump’s plans on tariffs. Mexico and Canada are major players for automotive suppliers, and rising tariffs, with the potential for a trade war, will likely affect production and lead to higher prices.
Tesla is also dealing with brand erosion due to Musk’s incendiary political rhetoric and his extensive work with current administration. A number of factors contributed to this reversal, including declines across the market and hints of a possible recession.
Protest at Tesla facility
Many activists and former Musk fans have protested at Tesla facilities across the U.S., and Tesla vehicles and facilities have been the apparent targets of vandalism and arson attempts. As per Ben Kallo, an analyst at Baird, “When people’s cars are in jeopardy of being keyed or set on fire out there, even people who support Musk or are indifferent Musk might think twice about buying a Tesla”.
Fall in Tesla sales
As per a report, Tesla’s new vehicle sales has fallen by about 50% in Europe in January from a year earlier. This is partly owing to growing distaste for the brand. The firm also noted that some prospective customers are waiting for the new version of the Model Y.
The small SUV, Tesla’s Model Y remained the best-selling battery electric vehicle globally in January. It was followed by China’s Geely Geome, which surpassed the Tesla Model 3 sedan for the month.
Global sales of electric vehicles, including fully electric and plug-in hybrid models, increased 21% in January from a year ago, even as Tesla’s sales declined. The growth was driven by demand in Europe, according to Bank of America.
