Tesla shares have been falling for seven consecutive weeks since Elon Musk joined the administration of United States President Donald Trump. The electric vehicle company has lost over 800 billion dollars in market value, marking the longest losing streak in its history as a publicly traded firm.
Tesla shares closed on Friday at 270.48 dollars, continuing a downward trend that began on November 5, election day, when the stock closed at 251.44 dollars. Since reaching a peak of nearly 480 dollars on December 17, the company’s market capitalisation has sharply declined.
Several major Wall Street firms, including Bank of America, Baird, and Goldman Sachs, have lowered their price targets for Tesla. Bank of America analysts reduced their forecast from 490 dollars to 380 dollars, citing falling sales of new Tesla vehicles and the absence of updates from Musk on an expected affordable model. Goldman Sachs lowered its price target from 345 dollars to 320 dollars, pointing to a decline in Tesla’s sales across key markets, including Europe, China, and parts of the United States.
| Key Metrics | Value |
|---|---|
| Current Tesla Share Price | 270.48 USD |
| Share Price Peak (Dec 17) | 480 USD |
| Market Capitalisation Lost | 800 Billion USD |
| Wall Street Forecasts | Lowered by Major Banks |
Goldman Sachs analysts highlighted concerns over Tesla’s competitive position in China, where rival companies do not charge extra for advanced driver assistance software. Tesla’s Full Self Driving (Supervised) system remains a premium add-on, creating pricing disadvantages in markets where competitors offer similar technology at no extra cost.
Investor uncertainty is growing not only due to Tesla’s financial performance but also because of Musk’s direct involvement in the White House. Some analysts argue that Musk’s political alignment with Trump is affecting demand for Tesla vehicles, particularly among customers in the United States and Europe.
In recent weeks, Tesla has faced increased protests, rising opposition, and incidents of suspected vandalism at its facilities. While the company’s most loyal supporters continue to back Musk, even optimistic investors have been forced to acknowledge the risks posed by his political actions.
Be First to Comment