Tesla shares crashes down over 15% amid market losses and volatility

Tesla's stock has plummeted, closing at $222.15 on Monday in the US after dropping 15.4%. Since September 2020, this week has been the most difficult trading day for electric vehicle manufacturers. The decline follows the company's biggest loss since going public on the Nasdaq in 2010, which lasted a record-breaking seven weeks.

Tesla shares have dropped over 50% of their value since reaching a peak of $479.86 on December 17, wiping out roughly $800 billion in market capitalization. The recent sell-off on Wall Street has added to a broader downturn in US markets, with the Nasdaq index dropping nearly 4%, its steepest fall since 2022.

Tesla's stock decline was further compounded by the decision of UBS Group AG analyst Joseph Spak to cut his delivery forecasts for the first quarter and full year. Spak predicts Tesla will deliver just 367,000 vehicles this quarter, a 16% cut from his previous estimate.

Read Also : RBI to soon issue Rs 100 and Rs 200 banknotes with new Governor’s signature

Uncertainty surrounding President Donald Trump’s plans for tariffs has contributed to Tesla's declining stock. Canada and Mexico are crucial markets for automotive suppliers, so increased tariffs could disrupt production and raise costs.

Furthermore, CEO Elon Musk’s inflammatory political statements and his significant involvement with the Trump administration have damaged Tesla's reputation in key electric vehicle markets.

Musk's controversial comments have also prompted protests at Tesla facilities across the country, with activists and former supporters expressing their discontent.

According to analysts at Bank of America, Tesla's new vehicle sales in Europe declined by approximately 50% in January compared to the previous year, a decline that is partly linked to the growing negative sentiment toward the brand.

Read Also : Airtel Announces Agreement with SpaceX to bring High-Speed Internet to Customers