市場分析

Tesla Stock Dips: What’s Behind the Loss of Trump Election Gains

Amos Simanungkalit · 28 Feb24.2K 閱讀

Image Credit: MSN

Tesla (TSLA) CEO Elon Musk, also the head of the Department of Government Efficiency (DOGE), has been asking government employees to report their weekly achievements. Tesla investors, however, are keen to ask Musk the same question.

Tesla’s stock has dropped 30.2% year-to-date and is approaching the point where it has nearly erased all the gains made since President Trump's election victory on November 5. The stock peaked at $479.86 on December 17 but has been in a steady decline ever since, falling below the $1 trillion market cap threshold. It closed down another 3% on Thursday.

Tesla shares initially surged following Trump’s election, as Musk’s close ties to the president were seen as a strategic bet. This relationship led Musk to create and head the DOGE initiative. However, the stock's recent downturn can be attributed to several factors, including disappointing fourth-quarter earnings, a drop in deliveries for the year—the first time this has happened in Tesla’s history—an ongoing NHTSA investigation into one of Tesla’s autonomous features, a decrease in European sales in January, and concerns over the demand for the Cybertruck, which has also seen price reductions.

A significant factor in Tesla's struggles is Musk's political involvement. His actions, particularly his association with controversial political movements both in the U.S. and abroad, may be alienating a broad segment of the public, including current and potential Tesla customers.

Musk’s political engagements have left investors wondering about his focus and priorities. While Tesla’s stock has been volatile in the past, with drops of 20% to 30% not being uncommon, a confluence of negative events seems to be weighing on the company’s shares, especially following a major rise after Trump’s election win.

Nonetheless, Tesla investors remain hopeful. The company recently released a new version of its popular Model Y, is expected to introduce a more affordable electric vehicle in the first half of the year, and plans to begin unsupervised robotaxi testing in Austin, Texas, in June.