Tesla shares drop by 15% in one day

Technology

On Monday, March 10, Tesla shares fell by more than 15%, wiping out all the gains observed after Donald Trump’s victory in the November 2024 elections, according to the dpa news agency.

Tesla shares drop by 15% in one day
In mid-December 2024, Tesla shares reached their peak at $480 per share, which was twice their price during Trump’s election campaign.

Currently, the shares are valued at around $222, bringing Tesla’s total market capitalization down from $1.5 trillion to $715 billion. For comparison, Ford’s market value stands at $40 billion, while General Motors’ is approximately $48 billion.

According to experts, Tesla’s sharp stock decline may also affect Elon Musk’s financial position, as he uses his shares as collateral for loans, making him the world’s richest person on paper.
However, if the stock price falls below a certain threshold, lenders may demand additional collateral. Bloomberg estimates that Musk’s total wealth still exceeds $300 billion.

Musk’s political statements are also harming Tesla’s business. Notably, he actively supported the far-right party "Alternative for Germany" (AfD) in the recent snap Bundestag elections, which led to a sharp drop in demand for Tesla cars in Germany.

Additionally, in 2024, the German government’s cancellation of the subsidy program for electric vehicle buyers caused Tesla’s sales to drop by 41%, with only 37,574 units sold.

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