No more “Trump bump,” as Tesla’s stock remains below its pre-election level after another month of poor Chinese sales statistics.
Since Elon Musk gave hundreds of millions of dollars before the November election, Wall Street expected Tesla investors to benefit most from a Trump presidency.
Read: Tesla stock may rise 50% as Musk’s ‘play for the ages’ on Trump pays off
Musk’s prominent participation in the Trump administration, which has sparked trade conflicts with China and the EU, has damaged Tesla’s sales and cost investors and Musk money.
Tesla’s stock (TSLA) fell 15% on Monday, hitting $213.65, its lowest close since Oct. 23, 2024. It plunged 21% in its largest one-day selloff since Sept. 8, 2020, extending its seven-week losing run to an eighth straight weekly loss.
Read More : Economists Thought Trump Would Try to Prevent a Recession That’s Now in Doubt
It was the poorest S&P 500 index SPX performer and second-worst Nasdaq 100 NDX performer on Monday.
China Passenger Car Association: New-energy passenger-car sales were “strong,” with market leader BYD Co. Ltd. (BYDDY) sales climbing 7.3% to 318,233 units on Monday, according to a Google translation of official data.
However, Tesla’s February sales fell 51.5% to 30,688 EVs from 63,238 in January.
Tesla sales in Germany, Europe’s largest economy, fell 76% in February after falling 60% in Germany and 45% in Europe in January due to Musk’s contentious politics. Tesla sales plummeted 11% in China in January.
After Tesla reported disappointing fourth-quarter profit and revenue on Jan. 29,
Monday’s selloff erased investors’ and Mush’s huge gain at the stock’s postelection top, plus more.
The stock rose $228.42, or 90.8%, from $251.44 on Election Day to $479.86 on Dec. 17.
Tesla’s market capitalization rose $734.73 billion in six weeks, and Musk’s Tesla shares rose $93.83 billion.
Tesla is worth $55.55 billion less and Musk has lost $7.09 billion since Trump’s election.
On Monday, UBS analyst Joseph Spak dropped his price objective on Tesla to $225 from $259 and downgraded Tesla’s first-quarter earnings, due in early April.
Spak lowered his delivery forecast to 367,000 EVs from 437,000. Spak’s prediction would entail a 5% year-over-year dip and a 26% drop from Tesla’s fourth-quarter deliveries. This compared to FactSet consensus of 435,000 Evs.
The analyst added Tesla’s “long-term story… has shifted to AI (robo-taxis and humanoid robots) and progress there continues,” but the stock’s “premium” multiples already account for those triggers.
