Investors turn on Elon Musk as Tesla’s stock crashes by over 40%

Source Cryptopolitan

Tesla’s TSLA stock, which surged 91% after President Donald Trump’s re-election, has collapsed by 44% since hitting an all-time high of $479.86 on December 17, according to data from Google Finance.

Now trading at $302.80, Tesla is losing billions in market value, and shareholders are questioning Elon Musk’s leadership.

Tesla disappoints investors as deliveries fall and probes increase

TSLA had been riding high on Musk’s close friendship with Trump, which had investors betting that regulatory advantages would help Tesla expand its autonomous and self-driving business.

For the first time in the company’s history, Tesla’s annual deliveries dropped year over year—a huge red flag for a company that has always pushed growth as its core narrative. But that was just the beginning of the bad news.

Earlier in January, the National Highway Traffic Safety Administration (NHTSA) launched another investigation into Tesla’s self-driving technology. This investigation followed many existing probes into Autopilot-related crashes.

At the same time, the much-hyped Cybertruck—which was supposed to revolutionize the pickup market—is already being discounted.

In Europe, sales have collapsed, with German sales down 60% since early 2024. Meanwhile, Tesla’s China business is under attack, losing market share to BYD, which now dominates the country’s EV market. Tesla’s China sales have dropped 22% year-over-year as Chinese consumers increasingly turn to domestic brands, according to the European Automobile Manufacturers’ Association.

Regulatory scrutiny is also getting worse in Berlin, Germany, where authorities are reviewing Tesla’s Gigafactory operations. Musk’s public support for the far-right Alternative für Deutschland (AfD) party has led to protests and boycotts, damaging Tesla’s brand in one of its largest European markets.

Instead of addressing production issues, supply chain concerns, and falling sales, Musk has been busy pushing his new Department of Government Efficiency (DOGE), which ironically now requires government employees to submit weekly reports on their productivity.

This project has nothing to do with Tesla, yet it’s consuming Musk’s time while Tesla’s stock craters. Meanwhile, Trump’s “America First” trade policies are adding to the uncertainty.

The administration’s plans to impose 60% tariffs on Chinese goods could worsen Tesla’s position in China, which is actually already a declining market for the company.

Interestingly, Tesla’s stock decline is mirroring Bitcoin’s current sell-off. Barclays analyst Dan Levy pointed out that Tesla’s meteoric rise last November wasn’t based on fundamentals but rather on market hype and technical trading factors.

“Bitcoin has also traded down since mid-December and has largely mirrored Tesla’s decline in the last month. We believe this may reflect a general pull-back from speculative assets/Trump beneficiaries,” Levy said in an interview with CNBC on Tuesday.

Screenshot of Barclay’s Dan Levy speaking about the market and Tesla’s position | Source: CNBC Television via YouTube

Levy also pointed out that Tesla’s recent underperformance aligns with a broader decline among big tech stocks, including Microsoft, Amazon, and Meta. But Tesla’s drop has been steeper than the rest, raising concerns that the company is facing bigger headwinds than its peers.

Levy doesn’t expect the near-term picture for Tesla to get much better, calling the stock’s short-term catalyst path “limited” and expecting “soft” first-quarter results. The analyst added that he was growing increasingly bearish about Tesla’s ability to improve profit margins, but expects the planned launch of the Robotaxi in Austin, Texas, in June to be a major catalyst for the stock.

Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Ethereum Price Drops Back: Another Test for Support LevelsEthereum price failed to clear the $3,750 resistance and trimmed gains. ETH is back to $3,350 and might struggle to start a fresh increase. Ethereum started a fresh decline from the $3,750 zone. The
Author  NewsBTC
Jan 08, Wed
Ethereum price failed to clear the $3,750 resistance and trimmed gains. ETH is back to $3,350 and might struggle to start a fresh increase. Ethereum started a fresh decline from the $3,750 zone. The
placeholder
Bitcoin Outlook 2025As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
Author  TradingKey
Jan 23, Thu
As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
placeholder
What Crypto Whales are Buying For May 2025Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
Author  Beincrypto
Apr 21, Mon
Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
placeholder
Ethereum Price Ready to Surge—$2,000 Level Could Be Within ReachEthereum price started a fresh increase above the $1,800 zone. ETH is now rising and attempting a move above the $1,850 resistance. Ethereum started a fresh recovery wave above the $1,820 resistance.
Author  NewsBTC
May 08, Thu
Ethereum price started a fresh increase above the $1,800 zone. ETH is now rising and attempting a move above the $1,850 resistance. Ethereum started a fresh recovery wave above the $1,820 resistance.
placeholder
Ethereum Price Explodes Past $2,200 with 25% Surge—Momentum Builds FastEthereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
Author  NewsBTC
May 09, Fri
Ethereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
goTop
quote