Tesla Stock Plummets 87% as Executives Sell Shares
As the company's stock continues to decline, investors are left wondering if Tesla can recover from the current slump, with some seeing opportunities for growth and others expressing concerns over the company's future prospects, particularly with regards to the impact of Musk's involvement with the Trump administration on demand and the potential for new tariffs to affect sales.
Tesla's stock price has plummeted 87% since President Trump's election, with executives selling millions of dollars in shares, including CFO Vaibhav Taneja's sale of $1.7 million in common stock, amid uncertainty surrounding potential tariffs and a backlash against CEO Elon Musk.
The company's global sales have also taken a hit, with Tesla sales in Australia plummeting 72% in February and sales across the European Union, UK, and European Free Trade Association falling 45% last month. Analysts have reduced their price targets, citing concerns over falling new vehicle sales, lack of a low-cost model update, and Musk's involvement with the Trump administration adding uncertainty to demand.
Some firms have added Tesla to their "bearish" lists, while others see an opportunity to buy the dip, with Wedbush Securities setting a 12-month price target of $550. Tesla bulls are optimistic about the company's future products, including affordable new EVs, a robotaxi, and driverless ride-hail service, but are facing a "gut check moment" due to Musk's politics and involvement with the Trump administration.
The decline in Tesla's stock price has also affected Elon Musk's net worth, which has dropped by $121.2 billion since its peak of $464 billion on December 17, 2024, due to Tesla stock plummeting 45% to $263 per share, its lowest since Election Day. Despite this, Musk remains the richest person on Earth, with a net worth more than $120 billion ahead of Mark Zuckerberg.
