Tesla’s post-election stock gains vanish as shares dip to their lowest level since Trump’s victory

Tesla’s stock has hit its lowest price since Election Day, hovering around the $251 threshold on midday Friday before slowly creeping back up again.

Shares were down 4.6%, putting Tesla on track to erase its entire $700 billion post-election gain. The company’s year-to-date losses reached around 35%, reported Yahoo Finance. Meanwhile, CEO Elon Musk’s net worth has fallen from a peak of $486 billion to $330 billion, according to the Bloomberg Billionaires List.

Gains from Trump’s 2024 election victory vanish

Shares of Tesla (Nasdaq: TSLA) had surged 91% in the aftermath of the 2024 U.S. presidential election, reaching their peak in mid-December. The rally was fueled by Wall Street’s expectations that Musk’s near $300 million donation to Donald Trump and GOP election efforts would lead to a big win for Tesla, reported Forbes.

However, the stock’s sharp decline follows a series of setbacks for the company. In February, Tesla’s sales plummeted in Europe and China, raising concerns among investors in the EV maker. Additionally, Musk’s growing political involvement has raised questions of whether he is becoming distracted from his role as chief executive.

On Tuesday, Bank of America downgraded Tesla’s stock, slashing its price target from $490 to $380.

Tesla remains highly sensitive to tariffs, as China is its second-largest market and the company relies on materials from Canada for production. “Tesla is still very reliant on parts from across the world for all our businesses,” Tesla CFO Vaibhav Taneja cautioned in January, as Forbes reported.

Tech-heavy Nasdaq leads broader market downturn

Adding to the pressure, broader market turmoil has intensified. The market rally that followed the election—fueled by speculation around what Wall Street had hoped would be a more pro-business administration—has been dampened by concerns over U.S. trade policy and slowing economic growth, according to Bloomberg.

The S&P 500 has dropped more than 7% from its peak. The Dow Jones Industrial Average is down a similar amount. Meanwhile, the Nasdaq Composite fell below 18,000 for the first time since October and is now trading at below its Election Day level.