Tesla’s Stock Plummets as ‘Trump Bump’ Disappears

Tesla’s stock has erased all its post-election gains, sinking below its pre-election price as another round of bad news hits the electric vehicle giant. The stock dropped 15 percent on Monday, marking its worst single-day decline since 2020.

Elon Musk, once expected to benefit from Trump’s presidency, has now seen his Tesla stake shrink by $7 billion. The company’s latest sales report out of China added fuel to the fire, showing a 51.5 percent drop in February compared to the previous month.

Why Tesla’s Stock Is Crashing
Tesla’s troubles go beyond stock performance. The company is facing a collapse in demand across major markets, with sales plunging in China and Europe. In Germany, Tesla’s registrations fell 76 percent in February, following a 60 percent drop in January.

The decline in China is especially troubling, as rival BYD continues to expand, increasing sales by 7.3 percent in the same period. While new-energy vehicle sales remain strong overall, Tesla is rapidly losing ground.

Adding to the pressure, UBS analyst Joseph Spak lowered his Tesla price target from $259 to $225, warning that first-quarter earnings could disappoint even further. Spak cut his delivery forecast by 16 percent, now expecting 367,000 vehicle deliveries instead of the 437,000 previously estimated.

From Market Leader to Falling Star?
Investors who expected Tesla to thrive under Trump are now questioning that bet. Musk’s close association with the administration, particularly its trade wars with China and the EU, appears to be hurting Tesla’s reputation overseas.

The company’s long-term vision remains focused on AI, robo-taxis, and humanoid robots, but analysts say those projects are already priced into Tesla’s stock valuation. For now, the core business—selling electric vehicles—is in decline.

What’s Next for Tesla?
The stock’s selloff has wiped out all the gains it made after Trump’s election. From a post-election high of $479.86, Tesla’s stock has now fallen over 55 percent, making it one of the worst performers in the S&P 500 and Nasdaq 100.

The big question: Can Tesla recover, or is this just the beginning of a deeper decline? With earnings coming up in April, all eyes are on Musk to see if he can turn things around—or if Tesla’s rough ride is far from over.







​