Tesla Stock Erases Post-Election Gains, Dow More Than 10% Monday

• Tesla shares fell more than 10% Monday.

• The stock fell below its pre-election levels Monday, and have lost half their value since a Dec. 17 peak.

• Concerns around CEO Elon Musk’s involvement in the Trump administration, tariffs, and declining registrations in China and Europe have pressured the stock.

Tesla (TSLA) shares slipped more than 10% Monday afternoon, putting it among the biggest S&P 500 decliners and starting the week on a negative note as the electric vehicle maker’s stock has declined in each of the last seven weeks

Shares have lost more than half of their value since a Dec. 17 record close of $479.86 as Tesla stock has given back all of its post-election gains since U.S. President Donald Trump’s win in November. Since Trump took office and Tesla CEO Elon Musk started working in the cost-cutting Department of Government Efficiency, however, shares have tumbled.

The stock was recently down about 13% to near $227, pulling the company’s market capitalization to below $820 billion, according to Visible Alpha data. Stocks were down broadly in recent trading.

It has been pressured by a weak fourth-quarter deliveries and earnings reports, uncertainty around Trump’s tariffs, and declining sales in China and registrations in Europe to start the year. Some investors and analysts are divided over whether Musk’s involvement with the Trump administration could hurt Tesla’s brand and sales.

Analysts remain divided on the stock, with the 19 brokers tracked by Visible Alpha split between 10 “buy,” five “hold,” and four “sell” ratings.

UBS analysts on Monday maintained their “sell” rating and lowered their price target to $225 from $259, and cut their estimates for first-quarter deliveries to 367,000 from 437,000 previously. They said the new Model Y and a yet-to-be-announced lower cost model will likely help sales, but see demand for the new Model Y as “somewhat muted” so far, and expect a lower-cost vehicle to come with a lower margin.

This article has been updated to reflect the latest share-price information.

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