Tesla's stock has faced a significant downturn, dropping to its lowest price since the 2024 Election Day. After an impressive 91% surge post-election, expectations around CEO Elon Musk's political donations to Donald Trump have crumbled as the company faces challenges in major markets like Europe and China. Bank of America has downgraded Tesla's stock, further burdened by rising trade concerns and a broader market decline. Tesla's reliance on international parts adds to the company's vulnerabilities in an increasingly uncertain economic climate.
Shares of Tesla had surged 91% in the aftermath of the 2024 U.S. presidential election, reaching their peak in mid-December.
Tesla remains highly sensitive to tariffs, as China is its second-largest market and the company relies on materials from Canada for production.
Bank of America downgraded Tesla's stock, slashing its price target from $490 to $380.
Musk's growing political involvement has raised questions of whether he is becoming distracted from his role as chief executive.
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