Tesla shares declined by 8% on Tuesday, nearly erasing the rally following Donald J. Trump’s election win. Investors had anticipated benefits from Elon Musk’s $250 million support for Trump’s campaign but are now concerned about Musk’s time spent in Washington amid falling Tesla sales. Musk’s involvement in right-wing politics, including endorsing a far-right party in Germany, is reportedly alienating buyers. In the U.S., even some Republicans are alarmed by Musk’s cost-cutting measures as head of the Department of Government Efficiency. Tesla’s market value dropped below $1 trillion, threatening Musk’s status as the world’s richest person. The stock closed at $302.80, the lowest since November 7, down 37% from its peak on December 17. Tesla’s European sales fell 50% in January compared to the previous year, despite a 34% surge in the overall electric vehicle market. Investor confidence has waned, with some, like Gary Black of the Future Fund, admitting they were overly optimistic about Tesla. Black noted disappointing Cybertruck sales and price cuts for the Model 3 and Model Y affecting profits. However, his firm still holds Tesla shares, expecting recovery to $380 within six to twelve months. — news from The New York Times
