Tesla’s shares collapsed in its greatest decrease of 5 years while wiping $ 800 billion

Although Tesla’s value has dropped, it is always worth more than most other major manufacturers combined

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In the weeks following Donald Trump’s electoral victory, Tesla’s share price experienced a rocket, reaching a record of $ 479 per share and taking Elon Musk’s net value with stratospheric Heights – by increasing it by more than $ 150 billion. But forward for today, and the scene has radically changed. Since the inauguration of Trump, Tesla’s actions have been on a descending spiral, lowering more than 15% on Monday at $ 222, a level not seen since last October.

The latter has been marked by the worst loss of a Tesla day since September 2020, and it is down more than 53% of this glorious peak of $ 479 in mid-December. At the time of writing this document, the action had dropped 2.7% more from $ 216.10, although it has since been back to around $ 222.

Last Friday, Tesla recorded its seventh consecutive week of defeats, marking the longest sequence of defeats that the company has seen since its appearance in 2010.

Read: Tesla’s sales crushed up to 63% in European markets, is musk or the new model there to blame?

It is clear that investors are not exactly delighted with the deep involvement of Elon Musk in the Trump administration, in particular to direct the Ministry of Government (DOGE). Earlier this week, Musk said Renard business That he plans to stay in the Trump administration for another year. When asked how he managed to manage his other companies, Musk replied: “with great difficulty”. »»

To make things worse for Musk, X (formerly Twitter) was affected by a massive cyber attack on Monday, causing major breakdowns. Not exactly the type of stability that investors hope.

Falling Sales: The inevitable decline?

Of course, it is not only Musk’s political involvement that is to blame for the course of the Tesla fall action. Data from several key markets around the world show that sales are decreasing and demanding for electric vehicles of the brand are starting to slow down.

In a note published to customers on Monday, UBS analysts said they expect Tesla to sell 367,000 vehicles in the first quarter of this year, according to a report Yahoo Finance. This would be a decrease of 6% compared to the 386,810 vehicles delivered in the first quarter of 2024, which itself marked a significant drop of 9% compared to the 422,875 delivered in the first quarter of 2023.

However, despite the recent Tesla shares, there remains by far the most precious car manufacturer in the world by market capitalization. On Monday, it was estimated at $ 696 billion – well in advance on car manufacturers inherited such as Ford ($ 39 billion), General Motors ($ 47 billion) and VW ($ 64 billion). This is due in part to the fact that many investors do not consider Tesla as a simple car manufacturer, but as a technological company which pushes the limits of artificial intelligence with its autonomous driving systems and its humanoid robots.

So, is this drop in stock prices just a temporary blip, or on Tesla days as a market capitalization mastodon end? Only time will tell us, but for the moment, it seems that the ride is a little more jumped than before.