Tesla tumbles again as investors bail on Elon Musk’s suddenly struggling electric vehicle company

Tesla Stock Plunges Again as Investor Confidence Wanes

Shares of Tesla tumbled 15.4% on Monday, closing at $222.15—their lowest level since late October—as investors continue to lose confidence in Elon Musk’s electric vehicle company. The decline follows a post-election surge, often referred to as the “Trump bump,” that has since reversed.

Monday’s drop, Tesla’s steepest since September 2020, comes amid a broader Wall Street sell-off fueled by uncertainty over the Trump administration’s trade policies. Analysts point to Musk’s vocal support for President Donald Trump and other far-right candidates as a key factor in Tesla’s struggles.

Musk contributed $270 million to Trump’s campaign, publicly endorsed him, and celebrated his victory over Democratic candidate Kamala Harris in November. Tesla stock initially Tesla tumbles again as investors bail on Elon Musk’s suddenly struggling electric vehicle companysoared to $479 per share by mid-December, but has since plummeted 40% as global sales decline and investor sentiment sours.