On the 10th (local time), Tesla’s stock price plummeted by more than 15% in a single day, marking its worst day in about four and a half years since 2020, according to reports from CNBC and other foreign media.
On this day at the New York Stock Exchange, Tesla shares closed at $222.15, down 15.43% from last Friday. This represents the steepest decline since Tesla’s NASDAQ listing in 2010.
The NASDAQ market dropped around 4%, its largest fall since 2022, amidst concerns over a potential economic recession and trade war tensions. Tesla (down 15%) and Nvidia (down 5%) led the downward trend.
Tesla’s stock decline appears to be linked to the market’s overall trend of uncertainty surrounding U.S. tariff plans and growing consumer resentment towards Tesla.
Currently, Tesla’s stock price has fallen more than 50% since hitting a peak of $479.86 on December 17 last year. Over $800 billion (approximately 1,166 trillion KRW) has been wiped off its market capitalization.
This drop in stock price has been associated with Elon Musk, the CEO, entering the U.S. political scene as a prominent figure. CNBC reported that Musk’s significant role in the Trump administration increased his unfavorable ratings, negatively impacting the Tesla brand as well.
Musk, in his role as the head of the Department of Government Efficiency (DOGE), led budget cuts across the federal government, sparking public backlash throughout the U.S. Protests emerged at Tesla stores nationwide, and Tesla vehicles and facilities became targets of vandalism and arson.
Ben Kallo, an analyst at Baird, mentioned on CNBC’s Squawk on the Street that recent targeted attacks on Tesla could affect vehicle demand. He added, “When people see their cars risk being stolen or set on fire, even those who support or are indifferent to Musk might think twice about buying a Tesla.”
Nevertheless, on the 10th, Musk stated in an interview with Fox News, “While it’s challenging to manage the company while leading DOGE, I will stay with the Trump administration for another year.”
Following the stock crash, Musk posted on X, saying, “In the long term, it won’t be a problem.”
On the same day, Bank of America analysts reported that Tesla’s new car sales in Europe dropped by about 50% year-on-year last January, lowering Tesla’s target stock price from $490 to $380. They attributed this partly to the growing disdain for the Tesla brand and noted that some potential customers are waiting for the new version of the Model Y.