Tesla's Dramatic Downfall Amid Musk's Political Alliances

Tesla's shares dropped 14% due to investor concerns over Elon Musk's support for Donald Trump. This has alienated Tesla's core buyers, leading to a significant decline in global sales, particularly in California, China, and Europe. Musk's other ventures are also facing challenges, worsening the situation.

Tesla shares experienced a significant slide on Monday as investor confidence in the electric car giant, headed by Elon Musk, waned following a post-election surge linked to President Donald Trump's victory. In afternoon trading, Tesla's stock dropped $36.66, or 14%, hitting a new low of $226.11.

The sharp decline reflects a broader shift in sentiment among investors, with analysts attributing Tesla's faltering performance to Musk's public support for Trump and other far-right political figures. A $270 million donation to Trump's campaign and Musk's appearance at related events have not sat well with Tesla's traditionally liberal customer base.

As a result, Tesla's sales have plummeted globally, including a dramatic 45% drop in Europe and a 60% decline in Germany and France. Adding to the turmoil, Tesla's U.S. showrooms have faced protests and vandalism, exacerbated by Musk's inflammatory remarks and challenges facing his other ventures, such as SpaceX and his social media platform.

(With inputs from agencies.)