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Musk’s never been more powerful so why are Tesla shares tanking? | Automotive Industry News

“Romance” was displayed between US President Donald Trump and Technology billionaire Elon Musk on Tuesday when The White South Lawn was converted into a Tesla mini showroom.

Musk lined Tesla cars to display the latest innovation of the electric car product, while Trump promised the brand of anyone who abandons the “local terrorist” Tesla after reports of a series of sabotage and deliberate attacks on Tesla cars throughout the country.

Trump, known for his strong position on local manufacturing and commercial leadership, has given Musk a prominent role in his new administration as a leader of the new government efficiency (DOGE), which she claims to own Detect “Billions and billions of dollars of waste, fraud and ill -treatment in the US federal government – the allegations of Musk and Trump After showing important evidence.

Meanwhile, the Tesla shares, which are listed on the Nasdak Stock Exchange, flounder. On Monday this week, it decreased by 15 percent to end today by $ 215 – the worst day of the share since 2020 and its lowest level since Trump won the presidential elections in November. The shares bounced again after the presidential plug on Tuesday for Tesla cars to $ 231.83 in the morning, before reaching about $ 235 by the end of the day. On Friday, the shares were scheduled to open at about $ 240.

Tesla shares were in a free fall since its highest levels of more than $ 435 in mid -December, 2024. Why is the car manufacturer badly when it seems that its owner is flying in the White House?

How to contribute Tesla tanks
(Al -Jazeera)

Why did the price of Tesla decrease?

Despite the good performance after the presidential elections in November in the United States, Tesla’s shares were volatile during the year 2024 in general and decreased sharply since the beginning of this year. Robert Scott, a specialist in international economy and commercial policy at the United States Economic Policy Institute, said that the share price is unavoidable due to his “extreme appreciation.”

“Tesla’s arrow was very exaggerated, as it recorded one of the highest prices to profits,” Scott told Al -Jazeera. This means that the stock price was very high compared to the profits that the company was generating. “This indicates that the share price was amplified in relation to the basics of the market.”

William Lee, the chief economist at the Milkin Institute, said that the decrease in the stock price was the result of the delay in launching new Tesla products.

“The new update of the T -Tesla model is still delayed, and most importantly, new models have not been presented,” he told me.

What happened to the sales of Tesla vehicles?

There was a noticeable decrease in sales in Europe and other places. According to Business Insider data, sales in business trade, in February, were 76 percent less in Germany than they were in the previous year, although the total sales of electric cars were 31 percent higher. Sales also decreased in Germany in January after Musk’s support for the right -wing AFD AFD. In Norway, Denmark and Sweden, sales decreased by 40 percent on an annual basis in February and decreased by 26 percent in France. The company also suffers from organized boycott campaigns in the United Kingdom and Portugal.

In the east, Tesla sales decreased by approximately 50 percent, on an annual basis, in China in February and 71 percent in Australia.

The main reason for this fall in sales is to increase competition from traditional car manufacturers in addition to new electric car companies that escalate, Especially in China, Where the BYD auto company increased 90 percent in sales in February.

China is the second largest market in Tesla, but government policies there are increasingly prefer local manufacturers.

Tesla has repeatedly reduced vehicle prices in an attempt to maintain demand in countries including the United States and China. Experts say that while this strategy helped increase sales in the short term, it also reduced the total profits, which raised concerns among investors about long -term profitability.

According to Lee, the other main issue that provokes investor minds is Tesla failure to provide innovations in self -driving technology and other major areas such as robots.

He said: “Investors are looking for progress in self -leadership, which continues to postpone it, and the disappointment of other hopes that weigh the morale of investors.”

He added that Tesla is fighting for new models or major technological developments, struggling to maintain its reputation as a pioneer in this field, which contributed more to its decrease in its shares.

How will musk personally be affected by all this?

Elon Musk also has many companies and other projects in various industries, including X, the social media platform known as Twitter, which he bought for $ 44 billion in 2022.

However, his personal wealth is closely related to the price of Tesla.

The acquisition of Twitter has become a financial burden, especially since advertisers retreat from it after Musk’s support for many right -wing parties in Europe and his use of X to broadcast his pro -Trump’s position. The billionaire was a major financial supporter of Trump’s presidential campaign last year, as he spent more than $ 250 million during his personal appearance on behalf of Trump.

His political activities caused the anger of some in the United States, and its peak in protests and deep burning attacks in Tesla agents, factories and shipping stations. There was a group of attacks on Tesla vehicles all over Europe, including in Germany where many vehicles were reduced.

Experts say MUSK activities in DOGE can make it a target for more anger.

Dog’s moves to Expand the budget of the federal government According to Sikout, thousands of jobs are reduced “approaching stagnation.” “The recession will reach very useful arrows like Tesla in particular.”

He told me that MUSK political activities have also prompted fears among investors.

He said: “Musk’s active participation in the United States government is seen as distraction from his ability to lead his companies to produce the innovations he promised on time.”

How will Trump’s commercial policies affect Tesla?

Experts say President Trump has no direct role in Tesla’s current struggles, as his policies, continuous economic decisions and the perceived influence on musk can have significant effects on the company.

For example, Trump historically opposed subsidies for electric car producers and emissions that ultimately benefit companies such as Tesla.

Trump also imposed a comprehensive tariff on countries, including China – which is still highly dependent on exports. The ongoing trade war with China can disrupt the supply chain in Tesla and reduce its competitiveness in the decisive market.

“Trump’s tariff imposing other countries is an introductory tariff on American exports. This will harm Tesla sales abroad.

Scott added that Trump’s efforts to reflect the clean energy policies of the Biden administration can weaken the demand for electric cars, including Tellas.

What hinders Tesla?

In addition to the financial challenges of Tesla, the MUSK wallet expanding companies raised concerns with investors about its ability to lead the company effectively.

Scott also referred to Musk’s involvement in DokwinCracks project, something that has no previous experience before it first in 2020, which led to a 20 percent increase in the value of Cryptocoin created by software engineers in 2013. Then in December of that year, Musk announced that it would accept Dogecoin as a payment for the goods of Tesla. Since then, Musk has faced a $ 258 billion lawsuit filed in New York in 2022, claiming that an artificial amplification of the price of Dogecoin through the impact of social media.

Scott said: “The increasing demands of musk are on his attention, as they try to manage both Dogs and other companies, which means that some of them may simply suffer from a lack of their attention.”

The growing right -wing political position in Musk may also affect the Tesla brand’s conception. Experts say that many vehicle owners tend to be environmental consumers who support sustainable energy initiatives, not a natural supporter of Trump.

According to Lee, Musk seems to be a deliberate option to engage in US government affairs at the expense of Tesla’s performance.

He told me: “While he tries to be patriotic and do good for the country, his investors and companies are sacrificed for the benefit of the future of the United States.”

https://www.aljazeera.com/wp-content/uploads/2025/03/2025-03-11T193526Z_1788639927_RC26BDAY4C1H_RTRMADP_3_USA-TRUMP-1741896292.jpg?resize=1920%2C1440

2025-03-14 11:27:00

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