Tesla's stock plummeted by over 15 percent on Monday, giving the electric vehicle company its worst day of trading since September 2020. It's the latest in an ongoing string of losses, with Tesla's shares having consistently fallen in the seven weeks since President Donald Trump took office.
Over 50 percent of Tesla's stock value has been wiped since its all-time high of $479.86 on Dec. 17 last year, with shares now sitting at $222.15 when markets closed on Monday. This erased approximately $800 billion from the company's value, causing Tesla to lose its status as a trillion-dollar company last month.
Despite this, Tesla CEO and close Trump ally Elon Musk doesn't seem to think anything needs to change. Responding to Tesla's falling stock in a post on X, the billionaire merely claimed that "it will be fine long-term," but offered no further elaboration.
Musk's split focus has been a cause of concern for some investors and market analysts, particularly as he funnels his efforts into working with the Trump administration in the Department of Government Efficiency (DOGE). In addition to Tesla, Musk is also CEO of SpaceX, owner of X, founder of the Boring Company, and co-founder of Neuralink.
Speaking in an interview with Fox Business on Monday, Musk stated that he was running his various businesses while working with the Trump administration "with great difficulty," but that he expected his work with DOGE to continue for another year.
Investors aren't the only ones who appear leery about Tesla at the moment. Tesla's own board members have dumped millions in stock over the past few months, which doesn't inspire confidence in their ability to reverse the company's fortunes. CFO Vaibhav Taneja has sold over $8 million in Tesla shares since January, while chairperson Robyn Denholm offloaded over $115 million of her own since December. Board member and Musk's brother Kimbal also sold Tesla shares worth almost $28 million last month.
Tesla is having a rough time of it right now. While its stock price initially surged following Trump's election win, all those gains have since been wiped out. The electric vehicle company seems to be on a downward spiral as global sales have slumped, and even used Tesla prices are dropping. Drivers are reportedly turning away from Tesla due to its association with Musk, which may have contributed to its profits plummeting by a shocking 70 percent in Q4 2024.
All this isn't even to mention the protests against CEO Elon Musk which have taken place outside Tesla showrooms across the country, with people even booing the Tesla Cybertruck at New Orleans' Mardi Gras parade. At this point, Tesla's association with Musk may be doing it more harm than good.
