Tesla Shares Fell 15%, Erasing Gains from a Post-Election Surge

Shares of Tesla, the U.S. electric carmaker, tumbled more than 15%, erasing all the gains it had made since the November U.S. presidential election.

The sharp decline in Tesla’s stock followed an analyst's downgraded delivery forecast, which added further downward pressure on the share price.

Tesla’s stock had surged after President Donald Trump’s election victory, reaching its peak in mid-December when its value nearly doubled from Election Day levels. However, the stock has been in steady decline since then, with losses accelerating in recent weeks.

The company’s 2024 performance also raised concerns, as Tesla reported its first annual decline in deliveries in over a decade, contradicting Elon Musk’s earlier predictions of growth.

Despite this, Musk continues to captivate investors with promises of breakthroughs in self-driving technology and humanoid robots—though success in these areas remains uncertain.

Tesla’s market capitalization hit a record $1.5 trillion in mid-December, with shares trading around $480. However, the recent downturn has sent the stock plummeting to approximately $222, slashing the company’s valuation to around $715 billion.

For comparison, traditional U.S. automakers Ford and General Motors currently have market values of $40 billion and $48 billion, respectively.

Musk’s personal wealth is heavily tied to Tesla’s stock, as he uses his shares as collateral for loans. A significant drop in Tesla’s price could create financial difficulties for him. Despite this, Bloomberg estimates Musk’s net worth at approximately $300 billion, making him the world’s richest person.

Tesla’s close ties to the Trump administration—particularly with Musk serving as a government cost-cutter—initially led some to speculate that the company might benefit from Trump’s influence.

On March 11, 2025, President Trump announced that he would purchase a “brand new Tesla” to show his support for Musk, a major campaign donor and advisor.

Trump praised Musk’s contributions to the country, calling him a key figure in the effort to “Make America Great Again.”

In a post on Truth Social, Trump accused “Radical Left Lunatics” of attempting to harm Musk and Tesla through boycotts.

The statement comes as Musk, in his role as head of the Department of Government Efficiency (DOGE), continues to lead efforts to cut federal spending and shrink agency workforces.