Adapted by:
Alberto de la Torre
WriterI've been a journalist and audiovisual communicator since 2016. My specialty is the automotive sector, where I’ve been analyzing the industry and its developments for more than five years. I'm particularly interested in new forms of mobility and the changes that cities are experiencing, especially in urban planning and the promotion of cycling and personal mobility vehicles.
Alba Mora
WriterAn established tech journalist, I entered the world of consumer tech by chance in 2018. In my writing and translating career, I've also covered a diverse range of topics, including entertainment, travel, science, and the economy.
As of publication, the price of a Tesla share is $225.73. This is already lower than the price on Nov. 5, 2024, the presidential election day. It’s also very close to matching the $213 share price at the end of October, which was the lowest figure in the past six months.
What happened?
15%. Tesla shares dropped by 15% on Monday. This decline is the latest indication that the company’s stock is approaching the $200 mark, continuing a downward trend that shows no signs of stabilizing.
Monday’s closing price confirms the company has consumed all the profits earned since President Donald Trump was reelected.
$40. Tesla has lost $40 a share in the last few days. On Friday, owning a small portion of the company cost $262, which was already $22 lower than the price recorded on March 3. That day, shares were valued at $284.
Tesla’s drop on Monday was consistent with the broader trend across the New York Stock Exchange. Major companies such as Alphabet, Meta, Apple, Nvidia, and Microsoft also experienced losses. However, none matched Tesla’s drop on a day that saw the largest decline in the stock market since 2022.
Elon Musk as the biggest asset. Recent performance trends suggest that Tesla’s stock embodies what some define as a “cult stock,” which thrives on future promises rather than current results. This phenomenon explains how the company has attracted investors despite experiencing years of financial losses.
The fervent admiration for Tesla CEO Elon Musk is one reason the stock price has gone up. His numerous promises of products that have often been delayed and not executed well have also helped. This increase was particularly pronounced when Trump, who’s very close to Musk, returned to office.
Disproportionate growth. Why has Tesla’s stock performed poorly in recent weeks? “When stocks overextend on the upside, they overextend on the downside,” Gina Bolvin, president of Bolvin Wealth Management Group, told CNN.
On Dec. 17, just a month and a half after the U.S. election, Tesla shares peaked at $476. Today, they’re valued at less than half that amount. The decline has been ongoing, with the stock price plummeting sharply to just below $200 a share.
Musk’s close ties to the White House led many to believe that Tesla would gain momentum. Notably, Musk has supported the withdrawal of subsidies for electric vehicle purchases, which should, in the short term, benefit a company that maintains a clear competitive advantage in the U.S. market. There were also high expectations for advancements in autonomous driving and the forthcoming robotaxi service.
Data. However, the stock’s prospects have been a reality check. 2024 marked the first time Tesla failed to surpass its previous year’s sales, despite efforts to avoid this outcome. In the first two months of 2025, sales have sharply declined across all markets, including the U.S., Europe, and China.
The issue extends beyond merely halted vehicle sales. Tesla’s most pressing problem is that other companies are proving they’re catching up. Notably, the company’s market share among electric vehicles in Europe has dramatically decreased from 29% to just 6%.
Turning sales around. Tesla must improve its sales figures. Numbers should start to show gradual improvement, particularly with the updated Tesla Model Y, its best-selling vehicle. The new model is expected to have a commercial impact, although it may take some time before it reflects in registration numbers.
After months of speculation, many potential buyers have likely been waiting for the model’s update before making a purchase. Initially priced high, the Model Y is now available in several versions. How much Tesla can rely on these deferred sales to bolster its performance remains to be seen.
Only time will tell if Tesla continues to decline in China. In a country where the electric vehicle market is evolving at an astonishing pace, it’ll be interesting to see whether the updated Tesla Model Y can keep up with the competition. For instance, the Xiaomi SU7 Ultra has recently seen a surge in pre-orders, while BYD has a new vehicle that can launch drones.
Robotaxi. Tesla’s major promise has long been the robotaxi. In fact, it could open up a new line of business and elevate the company’s financial standing. The ambitious goal is to have the robotaxi operational and generating revenue by 2027.
However, Tesla faces tough competition, with rivals having invested billions of dollars over the years, often with disappointing results. Given the tight timeframe for bringing a robotaxi to market and the current performance of Tesla’s autonomous driving capabilities, there’s little optimism that the announced plans will come to fruition.
Image | Manny Becerra
View 0 comments