Since the US president assumed, the actions fell almost 40%. The link between the businessman and the head of state did not bring benefits to the automaker.
The actions of Tesla They have had a disappointing yield so far this year, falling 28%. This descent has erased almost all the profits obtained since the president’s electoral victory Donald Trump On November 5. That day, the shares closed Au $ 251.44, reaching a maximum closing of US $ 479.86 on December 17.
However, since then, the value has fallen by 39%, even below the market capitalization level of US $ 1 billion.
The link with the Donald Trump administration
The initial increase in Tesla’s actions was partly due to Elon Musk’s closeness with the Trump administration. Musk, who in addition to being CEO of Tesla, is the nominal leader of the Government Efficiency Initiative (Doge), an entity created by President Trump. This relationship was perceived as positive for Tesla, since it would facilitate overcoming regulatory obstacles for the approval of its autonomous driving technology.
Factors that contributed to the fall
Several factors have contributed to the recent fall in Tesla’s actions:
- Disappointing financial results: the results of the fourth quarter and deliveries were not impressive, and annual deliveries decreased for the first time in the history of the company.
- Research and regulatory problems: in January, one of the autonomous functions of Tesla was investigated by the NHTSA, adding to other ongoing research on autonomous driving.
- Cybertruck problems: Cybertruck polarizer was discounted and faces possible demand problems.
- Fall in European sales: Tesla sales in Europe decreased in January.
- Elon Musk’s behavior: Musk’s political activities, both in the United States and abroad, where he has supported extreme right -wing political movements, have alienated broad sectors of the public, current customers and potential buyers of Tesla.
- CEO distraction: investors wonder if Musk is completely focused on Tesla, given their participation in politics.
Volatility and future hopes
Although Tesla’s actions have been volatile in the past, with short -term falls of up to 30%, a series of events seem to be affecting the company’s actions after a significant increase after Trump’s electoral victory. However, there is always hope for Tesla investors.
The company recently launched an updated version of its Model and, the best selling vehicle, and it is expected that a cheaper EV is expected in the first half of the year. In addition, Tesla plans to start the paid robotaxis evidence without supervision in Austin, Texas, in June.
Despite the current challenges, Tesla continues to innovate and looking for new opportunities in the electric vehicle and autonomous technology market.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
