Elon Musk, Tesla’s CEO and a key figure in Donald Trump’s second administration, is facing a series of setbacks. Tesla’s stock price is already downward, dropping more than 15% in a single day. Anti-Musk sentiment has also led to violent incidents, including arson and shootings targeting Tesla stores and vehicles.
Tesla’s stock closed at $222.15 on Monday’s New York Stock Exchange, a 15.43% drop from the previous trading day. This was the most significant single-day decline since September 8, 2020, when it fell by 21.06%. The company’s market capitalization shrank by approximately $130.3 billion in 24 hours. Tesla’s stock price fell as low as $220.66 during intraday trading.
The recent plunge erased all gains since last year’s U.S. presidential election. Tesla’s stock surged from $251.44 on Election Day, November 5, to an all-time high of $479.86 on December 17, as investors anticipated the election outcome’s benefits.
Tesla’s sharp stock decline appears to be driven by multiple factors, including sluggish sales and Musk’s political controversies. In Germany, Europe’s largest auto market, Tesla’s new vehicle registrations in January and February fell by about 70% compared to last year. Also, Tesla’s Shanghai factory saw a 49% drop in February deliveries from the previous month, reaching the lowest level since July 2022.
Analysts suggest that the growing consumer backlash against Musk’s political activities, particularly his role as head of the Department of Government Efficiency (DOGE) in the Trump administration, has negatively affected sales. In the United States, violent incidents targeting Tesla vehicles and facilities have been on the rise. Four Cybertrucks were set on fire in a Seattle parking lot on Monday. Musk shared a post on his social media account, claiming that a Democratic-affiliated group was responsible for the arson, calling it insanity.
The “#TeslaTakeDown” movement has gained traction online, increasing calls for a Tesla boycott. Protests condemning Musk have also taken place outside Tesla stores nationwide. A Tesla store near Portland, Oregon, was targeted in a shooting on Friday. According to The Washington Post, at least 12 violent incidents involving Tesla facilities have occurred since Musk assumed leadership of DOGE last month.
