Tesla’s post-election surge has officially disappeared, as shares of the electric vehicle giant dipped below their pre-election levels. Once up by 91%, Tesla’s stock has now been dragged down by market concerns and company-specific setbacks.

Key Developments

  • Tesla’s Stock Drop: Tesla’s shares fell roughly 8% on Monday morning, settling at $241—marking their lowest price since November 4, the day before the U.S. presidential election.
  • Market-Wide Decline: The slump comes amid a broader downturn in the stock market, driven by uncertainty surrounding economic policies. The Nasdaq Composite also tumbled nearly 3%, officially entering a 10% correction territory.
  • Analyst Warning: UBS analyst Joseph Spak revised his forecast for Tesla’s vehicle deliveries, predicting a 5% decline for 2025—contrasting sharply with analysts’ consensus projection of 12% growth. If accurate, this would mark Tesla’s second straight year of declining vehicle sales.
  • Massive Value Erosion: Tesla’s stock has dropped more than 50% from its all-time high in December, when investors had high hopes for policies favoring the automaker.
A Tesla Supercharger station with electric vehicles charging, showcasing the future of sustainable transportation.

Impact on Elon Musk

Tesla’s decline has significantly impacted Elon Musk’s net worth, which fell by $12 billion on Monday alone. Musk’s wealth now stands at $330 billion, a staggering $134 billion drop from its December peak of $464 billion, per Forbes.

The Bigger Picture

Musk, who contributed $288 million to election campaigns supporting Donald Trump and other GOP candidates, has been actively engaged in government cost-cutting initiatives. Meanwhile, Tesla faces major challenges from Trump’s tariff policies, which impact its supply chain and international sales—particularly in China and Europe.

Beyond tariffs, Tesla’s brand reputation has taken a hit, with reports indicating weaker-than-expected sales in early 2025. Analysts suggest that Musk’s high-profile political stances may be affecting consumer sentiment.

With Tesla under intense pressure, investors are watching closely to see whether the company can regain momentum or if further declines are ahead.

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This post was last modified on March 10, 2025