• Tesla's stock experienced another sharp decline as investors grow wary of demand slowdowns and competitive pressures.
  • Analysts highlight concerns over the company's long-term growth strategy and ability to maintain profitability.
  • Production challenges and global EV market shifts further contribute to investor unease.

Tesla shares took a tumble on Monday as confidence in Elon Musk's electric car company continues to decline following the recent Trump boost. With a record low of 15.4% decline to $222.15, the shares reflect the investors' lost trust as the company's sales take a hit across the globe.

While suffering another steep decline, Tesla shares showcases the investors' reaction to a combination of market challenges, competitive pressures and internal struggles.

Additionally, supply chain constraints and fluctuating production levels have compounded Tesla’s difficulties, creating an atmosphere of uncertainty among investors.

Chinese market, another crucial playground for Tesla is also under scrutiny as domestic manufacturers like BYD gain market share. The global EV industry is rapidly evolving, with automakers such as Ford and General Motors ramping up their electric vehicle offerings, posing a direct challenge to Tesla’s dominance.

Analysts associate the decline to the Elon Musk's support to U.S. President Trump and other far right candidates around the world.

Tesla stock surged to $479 per share by mid-December, but has since fallen, losing 40% of its value.

Musk has emerged as the figurehead of the Trump administration's aggressive government downsizing initiative, called the Department of Government Efficiency (DOGE).

The department has pledged significant federal worker layoffs and seeks to make substantial cuts to government spending.

With California witnessing the downfall of the company, despite the biggest U.S. market, Tesla sales has plunges all over the world with 45% in Europe and recorded its first annual global sales decline last year.

Being a proponent of Trump, Musk has also shown support for the far-right, pro-Russian, anti-Muslim party in Germany, called the British prime minister and "evil tyrant" and calling Canada "not a real country".

Edited by Harshajit Sarmah