Tesla Stock Drops Below Pre-Election Levels – Elon Musk’s Gamble Fails to Prop-Up the EV Maker

In the lead-up to the November presidential election, several Tesla investors criticized Elon Musk, arguing that his outspoken political engagement is negatively affecting the EV maker’s stock price.

However, after Musk’s preferred candidate, Donald Trump, won the election, Tesla’s stock price soared, rising nearly 90% in just one month.

Between November 5 and December 17, Tesla’s stock price shot up from $251 per share to $480 per share. Multiplying by the 3.2 billion Tesla shares outstanding, this increased the EV maker’s market cap close to $800 billion.

The sharp increase in Tesla’s share price also made Elon Musk nearly $100 billion richer in just one month.

Given this financial windfall, a lot of Tesla investors who previously criticized Musk’s political involvement quickly retracted their criticism and once again hailed him as a genius and a visionary.

However, fast forward two months, and Elon Musk has become an even more controversial figure. Consequently, significant negativity has also surfaced toward Tesla.

And along with all the negativity surrounding Tesla and Elon Musk, the EV maker’s stock price has taken a hit.

Over the last two months, Tesla’s stock has been dropping steadily, and during today’s mid-day trading, it fell back to $251 per share, a price the company last saw before Donald Trump’s election victory.

In the past few days, Elon Musk has been working to reassure Tesla investors who have seen the value of their Tesla shares cut in half.

Musk recently said, “The long-term prospects for Tesla is very high,” and that the company can grow profits by 1,000% over the next five years.

However, despite Musk’s efforts, more people seem to be selling Tesla stock than buying it.

Now, some financial analysts are even warning that Tesla’s stock price could drop by 95% in the next few months.

So, what’s going on? 

In addition to backing a presidential candidate, Elon Musk has now joined the new administration and become one of its most prominent figures.

It’s true that Elon Musk has gained a lot of new supporters thanks to his efforts with the so-called Department of Government Efficiency (DOGE).

A few days ago, we discussed a story about the author of Unplugged Alpha, who says he normally hates electric vehicles. However, he is considering buying a Tesla just to show support for Elon Musk’s political views.

Musk was thrilled to highlight the new Tesla fan he attracted; however, regrettably, Musk’s actions have also alienated many former Tesla enthusiasts.

Additionally, it seems that Musk has turned away more Tesla fans than he has gained new supporters.

Having said that, there are still a lot of Elon Musk fans who believe the work he’s doing for the country is so important that any harm to Tesla stock is a small price to pay.

That’s an interesting perspective given Elon Musk’s fiduciary duty to Tesla investors. However, please let me know what you think in the comments. Share your ideas by clicking the “Add new comment” button below. Also, make sure to visit our site, torquenews.com/Tesla, regularly for the latest updates.

For more information, check out: Tesla Fans Are Celebrating the Growing Anti-Tesla Sentiment as More & More Tesla Owners Dump Their Teslas at a Huge Loss – One Tesla Buyer Says “I Can’t Wait to Score a Deal on a Cybertruck”

Tinsae Aregay has been following Tesla and the evolution of the EV space daily for several years. He covers everything about Tesla, from the cars to Elon Musk, the energy business, and autonomy. Follow Tinsae on Twitter at @TinsaeAregay for daily Tesla news.