Elon Musk and his Tesla company have long been thought of as being one of the most successful in the car manufacture industry, and being worth billions of dollars.
Yet that no longer appears to still be true, as the car company's stock has gone from riding high to falling drastically, with Musk thought to be at the heart of it.
In December last year, Tesla had gained $733bn in market capitalisation since the US election, but it's since had a 54 percent drop and is the greatest fall among index members.
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Prior to US President Donald Trump being elected for his second presidency term in November last year, Tesla was trading at around 80 times expected earnings for 2025. This put it in the top 3 per cent of US-listed companies worth more than $1bn, according to Capital IQ data.
Prior to November 2024 and the US election, Tesla was estimated to be worth around $240bn, according to an estimate by Lex. An additional $560bn was comprised of various projects including self driving taxis and robot prototypes.
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However, since last year the company's outlook has become much more negative, with factors including a drop in sales from Europe and slowed down production in China impacting the stock price.
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The stock price took a particular dive this week on Monday (March 10) when it fell by 15 percent.
It's thought the stock fall and the waning confidence in the company isn't related to the Tesla cars, but more the wider projects ran by Musk through the company - including his plans for space travel and robotics.
Musk is also thought to be caught up with his various other roles, including being an advisor to Trump via his role in the Department of Government Efficiency (DOGE), which supports the Trump administration.
The plummeting Tesla stock comes as the company has had vehicles lined up outside the White House, with President Trump urging fans to show support for the car company.
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On Tuesday (11 March), Trump took to his own social media platform, Truth Social, to urge his fans to support the multi-billionaire's Tesla company.
He wrote: "To Republicans, Conservatives, and all great Americans, Elon Musk is 'putting it on the line' in order to help our Nation, and he is doing a FANTASTIC JOB!
"But the Radical Left Lunatics, as they often do, are trying to illegally and collusively boycott Tesla, one of the World’s great automakers, and Elon’s 'baby', in order to attack and do harm to Elon, and everything he stands for.
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"They tried to do it to me at the 2024 Presidential Ballot Box, but how did that work out? In any event, I’m going to buy a brand new Tesla tomorrow morning as a show of confidence and support for Elon Musk, a truly great American."
Trump concluded the plea: "Why should he be punished for putting his tremendous skills to work in order to help MAKE AMERICA GREAT AGAIN???"
Topics: Elon Musk, Money, US News, Donald Trump
Niamh Spence