Historic drop in Tesla shares: Elon Musk's moves impact Tesla

Tesla, one of the leading brands in the electric vehicle sector, is in the spotlight due to a significant loss of value in the stock market recently. Starting the week with a 15% decline, the company's shares have shown their weakest performance in the last five years. This decline has led to Tesla losing approximately 800 billion dollars in market value.

THE BIGGEST LOSS IN FIVE YEARS

Tesla shares have lost more than 50 percent of their value following the 479.86 dollar peak reached in December 2024. Having closed the last seven trading days with a decline, the company is experiencing its longest losing streak since its IPO in 2010. This situation has caused serious concerns among investors.

FACTORS BEHIND THE DECLINE

There are multiple reasons for this sharp decline in Tesla's shares. First, uncertainties in US trade policies are directly affecting the company's cost structure. Potential new customs tariffs on key suppliers such as Canada and Mexico carry the risk of increasing Tesla's production costs.

THE ROLE OF ELON MUSK AND BRAND PERCEPTION

The political stances and statements of Tesla CEO Elon Musk also play a significant role in the decline of the company's shares. Musk's relationship with the US President Donald Trump administration is seen as one of the factors negatively affecting Tesla's brand image. In particular, the controversial posts and harsh rhetoric he uses on his social media platform X are impacting the company's public perception.

COMPETITION IS INCREASING, MARKET SHARE IS SHRINKING

While there is a 21 percent growth globally in the electric and hybrid vehicle market, Tesla's market share is gradually shrinking. Despite this, the Model Y still retains the title of the world's best-selling electric vehicle. However, the Chinese automaker Geely's Geome model surpassed the Tesla Model 3 in January, rising to second place in the global rankings. This situation shows that Tesla is struggling in the face of increasing competition.

News Source: 12punto