Tesla Stock Falls. Does Elon Musk Care?
Since Friday of last week, Tesla (TSLA) shares have been plummeting, down nearly 9% in a few days. The stock is starting to climb again, but not enough to make up for the recent downturn.
Since January, Tesla stock has dropped about 40%, and that easily eliminated all the gains it had made after the Donald Trump election win. In about three months, Tesla CEO Elon Musk lost nearly $121 billion of his net worth, which is tied to Tesla earnings, in part.
It appears that Tesla is not doing as well as investors would have hoped considering Musk’s partnership in politics with Trump. Worse yet, it looks like Musk may not care too much what happens to his electric car company.
The Tesla Problem
Since Donald Trump took office, Musk has been busy heading up the newly formed Department of Government Efficiency (DOGE) and eliminating government positions, uncovering wastefulness, and bringing corruption to light. As helpful as his work may be for the U.S budget, it is not helping his failing car company.
Since the beginning of the year, Tesla sales have been down worldwide, with figures painting a poor picture of where Tesla is headed as a company. The car manufacturer has plans to release a cheaper model that could spur a sales boost, but the fact is that people are just not buying Tesla cars as much as they used to.
It also looks like Musk has taken a hands-off approach to running his company. He has been so focused on government cleanup that he has not been able to do much with Tesla.
Last year, Tesla reported a drop in sales from year to year for the first time ever. The current year is not looking too promising as well. The decline in Tesla shipments in China, for example, is down 49% for the month. In Germany, sales have slumped by 76% compared to the previous month.
Tesla is facing fierce competition from other electric car companies, and it will need to make some changes to stay relevant and to bring back its high sales figures. Musks’s partnership with Trump may not be helping either. Trump is very popular within the United States, winning the popular vote, in fact, but he is far less so around the world. This could be the factor that hurts tesla sales more than any other, and Musk may want to wake up and the impact that his close ties with Trump are having.
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