Tesla’s stock has crashed, dropping more than 8% and pushing the company’s market capitalization below $1 trillion for the first time since November. This decline marks a significant reversal of the post-election surge that had lifted Tesla’s shares following President Donald Trump’s victory. The downturn is attributed to disappointing sales data, concerns over Tesla’s autonomous driving technology, and broader market challenges.
Since the beginning of the year, Tesla’s shares have plummeted 25%, significantly outpacing the NASDAQ’s 1.5% decline. The stock has fallen more than 35% from its record close on December 16, 2024, erasing most of the gains made after President Trump’s election win.
The recent slide pushed Tesla’s market capitalization below 1 trillion, marking its lowest point since November 7, just two days after Trump′s election. Elon Musk′s net worth has decreased by over 100 billion during this period, although he remains the world’s richest person with an estimated fortune of about $380 billion.
A recent report highlighted that Tesla’s upgrade to its semi-automated driving systems failed to meet expectations, particularly in China. Many users expressed disappointment with the “navigate on city streets” feature, which did not align with Musk’s promises for self-driving capabilities. Other electric vehicle manufacturers in China, such as BYD and Xiaomi, offer similar technology either for free or at significantly lower costs, further pressuring Tesla’s market position.
Tesla also faced a 45% plunge in European EV registrations last month, contributing to investor concerns about the company’s global sales performance.
