Tesla's stock tumbles amid Musk's political entanglements
Tesla's stock price fell by approximately 13-14% on Monday, March 10th. This marks another week of losses for the electric car manufacturer's shares on the stock exchange, which coincides with Tesla creator Elon Musk's involvement in Donald Trump's administration.
Tesla is experiencing the longest series of stock value declines in its 15-year history. As highlighted by CNBC, this has been ongoing without interruption since Elon Musk went to Washington over seven weeks ago.
At the session's opening, Tesla's stock was approximately £207. At 17:30 GMT, it was valued at about £186. In mid-December 2024, they were valued at around £402 per share. Since the beginning of the year, Tesla's stock price has fallen by 42%. Tesla's market capitalisation is now approximately £585 billion.
Elon Musk in the White House, Tesla's stock in the doldrums
As we mentioned in Money.pl, the billionaire's public activities remain significant. Investors are concerned about Musk's political impact on Tesla. His involvement in the Trump administration and controversial statements on platform X have raised concerns.
The billionaire's role as an advisor to the president and leader of the Department of Government Efficiency (DOGE) introduces uncertainty about future demand for Tesla products. Rising anti-Musk sentiments in the USA and Europe have led to protests and vandalism at Tesla plants.
Tesla's valuation is still 33% higher than last year's beginning of March. Therefore, despite the challenges, some analysts see potential in Tesla's upcoming products. Wedbush Securities has added Tesla to its "Best Ideas" list, predicting that Musk will focus on the company in the second half of 2025. TD Cowen is also optimistic, expecting a new product cycle in 2025-26 to reignite sales growth.
Reuters notes that while Tesla today earns primarily from the production of electric cars, a considerable part of the company's stock valuation is based on hope — specifically, on the production of autonomous vehicles. The company has failed to fulfill this commitment, despite Musk repeatedly promising since 2016 that autonomous Teslas would be available by the following year.
