A rapid decline in Tesla's share prices testifies to investors' rage at Elon Musk – believes the CNN station. He indicates that the eccentric billionaire did not meet the expectations of Wall Street and became a polarizing figure in Donald Trump's administration.
After the election in USA Tesla shares increased by 91 percent They reached the peak just before Christmas. Investors expected Tesla to succeed as a result of taking power by Donald Trump – wrote CNN.
He reminded that Musk was one of the main sponsors of Trump's presidential campaign, which made him also a recognizable member of his administration. By acting as the head of the State Performance Department (Doge), he has so far tried to impose deep cuts of expenses, releasing thousands of federal employees.
Wall Street disappointed with Musk
Activity on the political scene, however, was not received positively by investors and Since the beginning of the year, Tesla's shares prices have been falling regularly.
“On Thursday, share prices (Tesla – ed.) Have fallen by 5.6 percent and are now lower by 45 percent than the December peak. Since Musk's coverage of the office, they have lost 38 percent.” – the American portal said.
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CNN explained that the decrease in stock price probably reflects the fears that Musk will be a more visible and polarizing figure in Trump's administration than was initially expected.
“Many investors probably thought that Musk would be a more traditional adviser to” behind the scenes “, not necessarily playing an active role in adopting a controversial policy” – we read.
Decrease in Tesla sales
The decline in Tesla's shares was also caused by an adverse market situation, i.e. growing competition from other manufacturers, especially those from China. Problems with the sale of Tesla cars also reduce the price of shares – the portal assessed.
He emphasized that the sale of electric vehicles in Europe increased in January by 34 percent, while Tesla sales fell by 50 percent As for the sale of Tesla in China, in January and February it fell by 29 percent, and this is the second largest market for the company after the USA, “Reuters said.
In turn, according to COX Automotive estimates, Tesla sales in the USA fell by 16 percent Between December and January.
Tesla supporters optimistic
According to Tesla supporters, there are still arguments for how Musk's connections with Trump administration can benefit the car manufacturer. For example, it is about easier approval of his plans for self -propelled “robotaksów” – CNN pointed out.
– Real unlocking of Tesla Da Autonomy (autonomous vehicles – ed.). Trump loves Muska, and Musk will get a few things he wants, and the most important thing is more opportunities to prove the safety of robotaks. I think this will happen – said Gene Munster, managing partner at Deepwater Asset Management.
Source of the main photo: PAP/EPA/BONNIE CASH/POOL