Tesla stock has lost half its value in 3 months!

This page is translated from the original post "L’action Tesla a perdu la moitié de sa valeur en 3 mois !" in French.

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Tesla Stock Exchange

On Monday, March 10, 2025, Tesla’s stock plummeted another 8% at the opening of the New York stock exchange in a deadly spiral.

On December 17, 2024, Tesla’s stock reached its all-time high at $488.54. Just under three months later, it struggles to stay above $240. Of course, Tesla’s stock has still gained 35% over one year and 559% over five years! These performances are envied by the entire market, but the downward momentum is inversely proportional to the rise that had driven the share to its peak. Among other factors, Trump’s madness has passed, while Elon Musk’s influence is growing, and the Robataxi is no more than an autonomous prototype among others. More severe is the fall…

Amidst these stubborn figures, it becomes difficult to ignore the shadows looming over Elon Musk and his close ties with Donald Trump. Musk’s frankness, once seen as a bold defense of free speech, now appears as a double-edged sword, alienating part of the public opinion while frightening a base of investors that is nonetheless pro-business and anti-regulation.

Public opinion quick to burn its idols

The support shown for Trump is beginning to erode Musk’s credibility in certain circles. The aura of the “brilliant entrepreneur,” previously seen as a modernist icon, now seems tarnished by controversial positions that evoke discomfort and division. Far from strengthening Tesla, this polarizing dynamic divides the market and exposes the company to criticisms that weaken its image.

As for Musk’s technological ambitions, once hailed as revolutionary advances, they now seem to raise more concerns than enthusiasm, given his extreme positions. Diversification into artificial intelligence, through xAI, is no longer seen as a value-creating effort but as a démarche with questionable ethical and societal implications.

Blending industrial vision with a divisive stance, Musk is not only redefining the role of the CEO but also following a trajectory that could isolate Tesla and its partners in an era where the complexity of economic, technological, and political issues demands more nuance and less provocation. What was once perceived as an odd baroque dance between these spheres now appears to be descending into clumsy chaos, casting doubt on the sustainability of this strategy. But is there really a strategy behind all this?

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