Tesla Shares: Tesla's biggest decline since 2020, shares fell 15%, know the reason and price

Tesla Shares: Elon Musk-owned world's leading electric vehicle manufacturer Tesla suffered a huge financial setback on Monday (US time). The company's stock fell more than 15 percent on Wall Street, the biggest one-day drop since 2020. Shares of Tesla Inc. on the Nasdaq fell 15.43% to close at $222.15, making it the company's worst trading day in the last four years.

Continuously falling shares and decline in market cap

Last Friday, Tesla completed its seventh consecutive week of losses, the longest losing streak since its listing on the Nasdaq in 2010.

According to analysts, Tesla shares were at their highest level of $479.86 on December 17, but since then they have fallen by more than 50%. This decline has reduced the company's market capitalization by more than $800 billion. On Monday, Tesla's stock reached a high of $253.37 and then fell to a low of $220.19, making it the seventh worst trading day in Tesla's history.

Major reasons for the decline

1. Trade uncertainty and tariff policy

According to a CNBC report, the growing uncertainty over former US President Donald Trump's tariff policies is a major reason behind the decline in Tesla's shares. Tesla relies on Canada and Mexico for its automotive suppliers, and a potential trade war and increased tariffs are expected to increase production costs.

2. Brand image and Elon Musk's rhetoric

Elon Musk's political rhetoric and his controversial views on government policies are also contributing to Tesla's falling brand image. Musk recently made statements against some judges and shared pro-Russia views on the social media platform X (formerly Twitter). Consumer perception of Tesla is being affected due to these controversies.

3. Huge drop in sales in Europe

Sales of Tesla's new vehicles in Europe fell by nearly 50% in January 2024 compared to the previous year. The main reason behind this is being attributed to the declining interest in the brand and increased competition.

4. Protests in the US

Musk's controversial rhetoric and his business strategies have also led to protests at Tesla's facilities in the US. These ongoing campaigns against Tesla by former supporters and social activists have damaged the company's image.

Way forward for Tesla

Although Tesla is a strong technology and innovation based company, it needs to adopt new strategies to improve its brand image and deal with market competition.

Experts believe that Tesla will have to focus on transparent policies and positive business outlook to win back the trust of its investors. Apart from this, reducing production costs and expanding into new markets can also benefit the company in the long term.

Conclusion

The recent decline in Tesla's shares is not just an immediate shock but the result of many economic and political factors. Elon Musk's leadership style, the company's branding strategy, and business uncertainty in the global market are playing a key role in this decline. In the coming months, Tesla will have to change its strategies and win back the trust of investors and consumers, only then this crisis can be averted.