Author: Farah Najjar
Published on: 14/03/2025 | 00:00:00
AI Summary:
Tesla shares plummeted by 15 percent to end the day at $215. Tesla stock has been in freefall since its heady highs of more than $435 in mid-December, 2024. Trump promised to brand anyone vandalising a Tesla car a “domestic terrorist”. Robert Scott, a specialist in international economics and trade policy at the US-based Economic Policy Institute, said a fall in the share price was inevitable due to its “extreme overvaluation” The price of the stock was highly overvalued, with one of the highest price-to-earnings ratios ever recorded. There has been a marked decrease in sales in Europe and elsewhere. Tesla sales plummeted by nearly 50 percent, year on year, in China in February and by a massive 71 percent in Australia. The main reason for these falls in sales is increased competition from traditional automakers as well as new, up-and-coming electric vehicle companies. China is Tesla’s second-largest market but government policies there are increasingly favouring domestic manufacturers. Trump spent $250m on Trump’s behalf last year. His political activities have caused anger among some in the US. There has been a spate of attacks on Tesla vehicles around Europe as well. Trump’s efforts to reverse clean energy policies from the Biden administration could further weaken demand for electric vehicles. Musk’s expanding portfolio of businesses has raised concerns with investors about his ability to effectively lead the company. In April 2021, Musk tweeted about Dogecoin again, triggering a 20 percent rise in the value of the cryptocoin created by software engineers in 2013.
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