Tesla Shares Drop 15%, Marking Its Worst Day Since 2020
Billionaire, Elon Musk has been at the forefront of many political, tech, and finance conversations lately, especially since President Trump took office.
From potential cyberattacks on social media platform, X to protests in the street, Elon Musk has been facing heat from many Americans since taking his position in the Trump administration.
The latest news is a big hit to Tesla shares, plunging 15%. This steep drop marks the worst day on the market since September 2020 during the COVID-19 pandemic.
A Steep Decline
Tesla's stock didn't just drop in one day, rather it's been declining over a period of seven weeks - its longest losing streak since it debuted in 2010 on Nasdaq. The stock has continued to fall every week since Elon has taken a major role next to President Trump.
Tesla stock reached a high of $479.86 on December 17, but since then, the value has dropped by more than 50%. This means Tesla has lost over $800 billion in market value. On Monday, the stock had one of its worst days ever, ranking as the seventh worst day in its history.
This significant decline in U.S. stocks is contributing to a broader market downturn. The Nasdaq fell nearly 4%—its largest drop since 2022.
In an interview on Monday, Musk was asked how he was managing to run his business while also working in the White House. He responded he's managing "with great difficulty."
It begs the question of how long Elon Musk plans to take on this role with the Trump Administration. Although he is expecting to stay in the White House for another year, as stated in an interview, it's uncertain of his plans.
Tesla Boycotters
Some Americans have taken to the streets to protest Tesla and encourage a boycott of the company. Aside from Elon's role in the Trump Administration, some people are concerned about the 25% tariffs on Canada and Mexico instilled by the president.
Canada and Mexico are important markets for car parts suppliers, and higher tariffs could disrupt production and lead to increased costs.
Additionally, Elon Musk's political involvement has contributed to damaging Tesla's brand. Musk has taken a leading role in efforts to reduce the federal government's workforce and spending. His controversial behavior, including using his platform X to attack judges and spread false information about Ukraine's president, has sparked backlash.
Protests against Musk and Tesla have grown across the U.S., with some facilities targeted by vandalism and arson. For example, repeated arson attempts occurred at a Tesla store in Loveland, Colorado on March 7.
Trump Calls Boycott Illegal
As the news of Tesla stock makes waves, President Trump has announced he will be buying a Tesla in support of Elon Musk.
Trump wrote in a post on Truth Social on Tuesday, “I’m going to buy a brand new Tesla tomorrow morning as a show of confidence and support for Elon Musk, a truly great American. Why should he be punished for putting his tremendous skills to work in order to help MAKE AMERICA GREAT AGAIN???”
While Trump has claimed this Tesla boycott is illegal, it's actually not. In 1982, the Supreme Court ruled that the First Ammendment protects Americans' right to protect private businesses, such as Tesla.
Electric Vehicle Sales Increase
Although Tesla stocks are declining, the sale of electric vehicles have been on the rise, increasing by 21% from January 2024.
According to the International Energy Agency, at least one in five cars sold in 2023 were electric, and 95% were sold in the U.S., Europe, and China.