Elon Musk’s honeymoon after the election at Tesla seems to be over.
In the weeks after Musk went over to Donald Trump and came out on the winning side, the billionaire’s net worth of an estimated $ 170 billion raised as the Tesla share rose.
But now EV Maker is struggling with falling global sales, duty fears and potential setbacks to the political views of his CEO.
The year started off a tough start when the company reported that by 2024 it experienced its first annual fall in deliveries. The bad news continued in January, with the most important markets that flashed warning signs for the EV maker.
Tesla sales in France fell 63 percent last month during the previous January, lowering 59.5 percent in Germany in the same month for the month period in the middle of a setback against Musk over his support for the right-right alternative for Germany ( Department) Party. It was the worst January since 2021 for Tesla Sales in Germany.
Sales were also down to the UK.
In China, one of the company’s largest markets, sales fell 11.5 percent in January over years, while Tesla’s Chinese rival offered an increase of almost 50 percent over the same period.
In markets with high concentrations of EVs such as Sweden and Norway, the indications were a little better. New Tesla registrations fell 44 percent compared to last year in the former and 38 percent in the latter despite high demand for cars in both countries.
Sales combined with the Trump Customs threats in the White House worldwide have some investors arguing for musk and Tesla is experiencing a Trump lash.
“There is an argument to be made that Tesla is starting to be punished for Musk’s close relationship with Trump,” wrote Mike O’Rourke, Chief Market strategist at Jonestrading, in a research note, Bloomberg noted.
Last week, a Colorado Tesla dealer was vandalized with offensive graffiti and had broken its windows, the third attack of two weeks, according to police.
The company itself has acknowledged that the Trump administration’s trade policy, which can impose customs on customs for the most important US trading partners and producers of industrial input, damage Tesla.
“Over the years we have tried to locate our supply chain in any market, but we are still dependent on parts from all over the world for all our companies,” said Tesla Motors’ Chief Financial Officer Vaibhav Tanja on a recent earnings call, CNBC reports, with the practice , who noted that “the introduction of customs duties” would “have an impact on our business and profitability.”
The company has not introduced a brand new model since the end of 2023 when it started rolling out cybertruck out, although it has suggested that it could introduce a more affordable option at some point in 2025.
From Monday Morning, the Tesla share traded around $ 350, well down from its highest in December of about $ 480 per day. Stock.