Tesla’s stock has experienced a sharp decline in recent months, reflecting investor concerns over the company’s leadership, sales performance, and market position. On December 17, Tesla shares reached an all-time high of $479.86, boosted by investor optimism surrounding regulatory prospects. However, as of the latest market close, the stock had fallen to $222.15, representing a loss of more than 50% in three months and wiping out approximately $800 billion in market value.
The downturn has been accompanied by a wave of protests against Tesla, with demonstrations taking place in multiple cities. In France, arson is suspected in a fire that damaged a Tesla dealership in Toulouse. In the United States, protests have led to arrests in New York City, while Chicago police were seen in riot gear outside a Tesla store. The protests, which have gained momentum in recent weeks, have coincided with broader discussions about the impact of CEO Elon Musk’s public statements and political affiliations on Tesla’s brand perception.
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Investor confidence has been further shaken by stock sales from Tesla executives and board members. A recent SEC filing revealed that Tesla’s Chief Financial Officer, Vaibhav Taneja, sold $1.7 million in company shares, while board chair Robyn Denholm offloaded $33 million. Kimbal Musk, Elon Musk’s brother, has also been selling Tesla stock since February, signaling potential internal concerns about the company’s future.
Tesla’s sales performance in key markets has also raised questions. European sales have weakened, and demand in China remains uncertain. While reports suggested that Tesla received more than 200,000 preorders for the refreshed Model Y in China, the company’s local website currently indicates only a short wait time of 2-4 weeks for delivery. This follows a pattern seen with the Model 3 refresh, which initially generated strong interest before experiencing a slowdown in demand.
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Tesla remains the world’s leading EV manufacturer, but its recent challenges highlight shifting market dynamics. As the company enters the first fiscal quarter of 2025 and prepares for the launch of one of its most anticipated vehicles, investor and consumer sentiment will be critical in determining its trajectory in the evolving electric vehicle landscape.
Source: InsideEVs