Tesla shares have fallen more than 40% since January, erasing all gains made post-Election Day. Elon Musk, whose wealth is closely tied to Tesla, has lost $121 billion from his net worth over the past three months. Tesla’s core business faces significant challenges, including its first-ever drop in global sales last year, with analysts lowering delivery forecasts for the company. In China, Tesla struggles to compete against domestic carmakers, with shipments falling 49% year-over-year. European sales are also declining, particularly in Germany, where sales tumbled 76% last month due to consumer outrage over Musk’s political affiliations. On Monday, Tesla faced dual setbacks in China: BYD unveiled a new charging system twice as fast as Tesla’s, and Tesla launched a free monthlong trial of its “Full Self-Driving” software, signaling its struggle to regain market share. Tesla’s shares fell 5% in the U.S. on Monday and another 5% on Tuesday after RBC lowered its price target due to growing domestic competition. Pre-owned Tesla prices are falling at more than double the rate of the average car, with used Teslas declining 7.3% year-over-year compared to the overall used car market’s 2.7% decline. A used Cybertruck’s resale value has dropped by 58%. Activists have initiated a “Tesla Takedown” movement encouraging people to sell Tesla vehicles, dump the stock, and protest at showrooms. Analysts at JPMorgan noted the unprecedented speed at which Tesla’s brand value has diminished. Musk’s political stance and controversial social media activity appear to be damaging Tesla’s reputation further. — news from CNN
