Tesla Stock Plummets 15%, Wiping Out Post-Election Surge as Challenges Mount

March 10, 2025 – Tesla stock crashed over 15% on Monday, erasing all gains since the U.S. presidential election in November 2024.

The drop slashed hundreds of billions from Tesla’s market cap, sparked by an analyst downgrade cutting delivery forecasts.

For investors riding the post-election high, this Tesla stock plunge highlights the company’s volatility—and risks tied to CEO Elon Musk.

The Post-Election Rollercoaster

Tesla stock surged after Donald Trump’s November victory, with Musk as a key supporter.

By mid-December, Tesla stock had nearly doubled, hitting $480 per share and pushing the market cap above $1.5 trillion.

Traditional automakers like Ford ($40 billion) and GM ($48 billion) paled in comparison.

But since that peak, Tesla stock has slid steadily, with Monday’s drop accelerating the decline.

Now at $222 per share, Tesla’s market cap sits at roughly $715 billion—a steep fall from its high.

A Tough End to 2024

Monday’s Tesla stock sell-off wasn’t a surprise.

Tesla ended 2024 with its first delivery decline in over a decade, defying Musk’s growth promises.

Soft EV demand, competition from China’s BYD, and economic pressures hit hard.

The analyst’s 2025 delivery downgrade only deepened doubts about Tesla stock’s future.

Musk’s Big Bets

Musk has long sold investors on Tesla’s next frontiers: self-driving tech and humanoid robots.

Yet, autonomy faces regulatory and technical delays, while “Optimus” robots remain more hype than reality.

These unproven ventures have kept Tesla stock’s valuation sky-high despite core business struggles.

Skeptics warn the gap between promise and delivery is widening.

Musk’s Wealth on the Line

The Tesla stock drop hits Musk personally.

His $300 billion fortune, per Bloomberg, hinges on Tesla stock, often used as loan collateral.

A prolonged decline could force him to pledge more assets or sell shares, adding pressure.

Musk’s juggling act—Tesla, SpaceX, Neuralink—faces a critical test.

Political Power Play

Musk’s role as Trump’s cost-cutting czar has fueled speculation about Tesla stock perks.

Could regulatory breaks or subsidies lift the company? Trump denies any conflicts of interest.

But Monday’s Tesla stock reaction suggests investors prioritize results over politics.

Tesla’s Dual Reality

Tesla stock reflects two truths.

It’s still an EV leader with a valuation dwarfing Ford and GM combined.

Yet, production hiccups, supply chain woes, and rising competition loom large.

Bulls bet on AI and automation to revive Tesla stock; bears see overreliance on Musk’s vision.

What’s Ahead for Tesla Stock?

In 2025, Tesla stock faces a reckoning.

Can Musk deliver stronger deliveries or autonomy breakthroughs?

Will his Trump ties offer a boost—or prove a distraction?

For now, Tesla stock’s post-election shine is gone, and the path forward looks rough.

Whether this is a dip or a deeper fall, Tesla stock remains a high-stakes gamble.