Causes of the Price Drop
Weak Sales Figures: The main reason for the crash is weak sales figures. Tesla failed to meet analysts’ expectations, leading to a massive devaluation of the stock.
Political Uncertainties: Additionally, political developments are weighing on the stock: since Elon Musk intensified his criticism of Donald Trump and distanced himself from politics in Washington, the stock has already fallen by about 12 percent. Musk’s support for Trump in July 2024 initially led to a strong increase, but then followed a decline.
Cutbacks in Subsidies: Another factor is looming cutbacks in subsidies: The U.S. House of Representatives plans to largely eliminate the popular incentives for electric vehicles—a crucial incentive for buyers and manufacturers like Tesla. According to analysts from J.P. Morgan, this measure could cause a significant drop in profits for the entire year.
Impact on Investors
- High Volatility: The Tesla stock has shown high volatility for months.
- Uncertainty: Investors are responding sensitively to negative news regarding sales, political developments, and regulatory changes.
- Long-Term Perspective: Despite the current setback, Tesla remains one of the most valuable companies in the field of electromobility.
Summary
The decline in Tesla’s stock price is the result of several factors: weak sales figures, political uncertainties surrounding Elon Musk, and looming cutbacks in subsidies in the electromobility sector. For investors, this means increased risks while also having the potential for long-term growth—provided the company can adapt.