Tesla has had its worst day on the stock market since 2020: shares down 15 per cent

Monday was a black day for Tesla, as the company's stock plunged more than 15% on March 10, the biggest drop since September 2020. The company's capitalisation has fallen by $800 billion since December 2024, and its share price fell from a record $479.86 to $222.15 at the close of trading on Monday.

Here's What We Know

Tesla's decline has continued for seven consecutive weeks since Donald Trump's return to the White House. Investors are concerned not only about the decline in electric car sales, but also that Tesla CEO Elon Musk is more focused on working with the US presidential administration than running the company.

Musk's divided focus has become a cause for concern not only for investors and market analysts. Even members of Tesla's board of directors have dumped shares over the past few months, which does not inspire confidence in their ability to turn the tide at the company. For example, CFO Vaibhav Taneja has sold more than $8 million worth of Tesla stock since January, while chairman Robyn Denholm has sold more than $115 million worth of her own shares since December. Kimbal Musk, a board member and brother of Ilon Musk, also sold nearly $28 million worth of Tesla stock last month.

Musk himself is reacting calmly to the crisis, saying on his own social network X that "everything will be fine in the long run."

Tesla is going through some tough times right now. While its share price rose sharply after Trump won the election, all those gains have since been reversed. The electric car company seems to be on a downward spiral as global sales are plummeting.

Drivers are reportedly turning away from Tesla because of its association with Musk, which may have contributed to its profits plummeting 70 per cent in the fourth quarter of 2024. Some Tesla electric car owners in the US even disguise their cars as Honda, Audi and Mazda to avoid offence and conflict.

Source: Mashable