Photo: Tesla Model Y
Tesla shares fell sharply by 15.4%, reaching $222.15 – the biggest drop in Elon Musk’s company since September 2020. Investors are losing confidence due to a sharp decline in sales and Musk’s political stance, which openly supports Donald Trump, CNBC reports.
After Trump won the election, Tesla shares soared to $479, but then lost 40% of their value. The main reason for this was a drop in demand for the company’s electric vehicles. In California, Tesla’s largest market, sales declined for the first time in many years. In Europe, sales fell by 45%, especially in Germany and France. In China, Tesla is also losing ground due to increased competition from local manufacturers.
In addition to financial losses, the company faced protests. In the United States, activists attack Tesla showrooms and paint cars with inscriptions such as “I bought it before Musk went crazy”. In France, several Tesla electric vehicles were set on fire.
Analysts explain that Musk, who headed a new government agency under Trump’s leadership, has caused discontent among Tesla customers, who are mostly liberal and support environmental policies.
Amid the crisis, Donald Trump defended Musk, saying that he would personally buy Tesla to support the company. At the same time, experts doubt that this will help Tesla avoid a further decline in the market.
