AP – Shares of Tesla slid again as confidence in Elon Musk’s electric car company continues to disintegrate following a post-election “Trump bump”.
Tesla shares tumbled 15.4 per cent, to USD222.15. That’s the lowest Tesla shares have traded since late October, reflecting investors’ newfound pessimism as the automaker’s sales crater around the globe.
The decline, Tesla’s steepest since September 2020, came with Wall Street in the midst of a sell-off caused by uncertainty over the Trump administration’s trade policies. Many analysts have attributed Tesla’s sagging stock – and auto sales – to Musk’s support of United States (US) President Donald Trump and other far right candidates around the world.
Musk pumped USD270 million into Trump’s campaign heading into the 2024 election, appeared on stage with him and cheered Trump’s victory over Democratic candidate Kamala Harris in November. Tesla stock soared to USD479 per share by mid-December, but have since tumbled back to earth, losing 40 per cent of their value.
Musk has become the face of the Trump administration’s slash-and-burn government downsizing efforts, known as the Department of Government Efficiency, or DOGE.
The department has promised massive federal worker layoffs and aims to drastically reduce government spending. Analysts have said Musk’s shift to right-wing politics doesn’t appear to sit well with potential Tesla buyers, generally perceived to be wealthy, environmentally-conscious liberals who have turned to electric vehicles in an attempt to reduce fossil fuel emissions.
