Tesla logo illustration
The collapse in the price of Tesla has entered into seventh consecutive week of losses effectively wiping out all of the gains made since the election of President Trump.
At one point, the stock had reached a high of $488 a share with a market capitalization of $1.6 trillion. As of Monday, March 10th, shares of Tesla were changing hands at $236 a share.
The initial euphoria around expectations that a Trump Administration would mean less regulation has given way to concerns about CEO Elon Musk’s active role in the Department of Government Efficiency (DOGE). Polarized public opinion about federal layoffs has led to a decline in Tesla’s brand image, especially among environmentally conscious consumers. With protestors appearing at showrooms on a daily basis, some of the demonstrations have been marred by vandalism.
Overseas, Tesla’s sales in Germany dropped by a dramatic 76% in February compared to the previous year amid an overall gain of 31% for all EV brands during the same period.
Tesla is also running into production bottlenecks and supply chain disruptions that have hindered its ability to meet delivery targets. The trade wars with Canada and Mexico have led to fears that tariffs may drive up the cost of raw materials and industrial equipment.
While Tesla is not alone in having to grapple with the potential implications of these tariffs on their supply chains and profitability, Tesla stock has historically been valued at a premium. The disparity between valuation and performance is likely to draw greater scrutiny from investors and analysts.
As Tesla navigates these challenges with Musk away from the helm, investors and stakeholders are actively monitoring the company’s strategic responses to regain its market position and restore investor confidence.
