Tesla's stock price has given back all the gains since Trump's victory!

Due to a slowdown in sales and a series of "mysterious operations" by Elon Musk in politics, Tesla's stock has fallen below the $1 trillion market value level, nearly erasing all gains since Trump's election.

Data shows that since reaching a historical high of $479.86 in December 2024, Tesla's stock price has continued to decline, accumulating a 40% drop. Yesterday, Tesla's stock closed at $281.95.

The sharp decline in stock price has resulted in significant losses for Tesla's investors, with the South Korean market being particularly hard hit. According to data from three South Korean brokerages compiled by Bloomberg, as of February 21, South Korean investors held approximately 358 billion won ($245 million) in the London-listed Tesla 3x leveraged ETF (Leverage Shares 3x Tesla ETP), accounting for over 90% of the fund's assets. This product has plummeted more than 80% from its peak in December.

Additionally, South Korean investors also hold about $1.5 billion in the U.S.-listed Tesla 2x leveraged ETF, representing 43% of the fund's total assets, which has also shrunk nearly 70% from its peak on December 17.

Analysts point out that multiple factors are behind Tesla's recent decline:

• Tesla's fourth-quarter performance and delivery numbers fell short of expectations, marking the first historical decline in annual deliveries;

• Weak demand for the Cybertruck forced price cuts;

• A significant drop in sales in the European market in January;

• And an investigation by the National Highway Traffic Safety Administration (NHTSA) into its autonomous driving features.

In addition to these, another "culprit" is Musk's political activities. Since Trump's victory, Musk has been appointed head of the Department of Government Efficiency (DOGE), which was initially seen as good news by the market, believing it would help Tesla overcome regulatory hurdles in autonomous driving technology, leading to a surge in stock prices.

However, with a series of controversial policies implemented by DOGE domestically in the U.S. and Musk's support for far-right political movements abroad, analysts believe that these could alienate a large number of potential customers and raise doubts among investors about his focus on the company's operations.

Nevertheless, from the perspective of the company's technological breakthroughs, investors still seem to have hope. It is reported that Tesla has launched an upgraded Model Y and is expected to release more affordable electric vehicle models in the first half of this year, with plans to begin paid, unsupervised robotaxi testing in Austin, Texas, in June