On Tuesday, the White House South Lawn was transformed into a mini Tesla showroom. President Donald Trump and tech mogul Elon Musk displayed their close relationship on full display. Musk showcased the latest innovations from Tesla, while Trump promised to label anyone who vandalizes a Tesla car as a “domestic terrorist.” Some people might wonder why Tesla’s stock is performing poorly despite Musk’s close ties to Trump. Tesla stock has been on a downward spiral as it goes against the set market fundamentals due to its high price-to-earnings ratio. The fall in share price could also be attributed to delays in introducing new Tesla products and decreased sales in various countries. Increased competition from traditional automakers and new electric vehicle brands has further impacted Tesla’s performance. Tesla has had to cut prices to maintain demand, which has raised concerns about long-term profitability. Musk’s deep involvement in Dogecoin, a cryptocurrency project, his political stance, and the consequences of these actions have all negatively affected Tesla as well. The company has had to deal with a damaged brand and a decline in sales. Overall, Trump’s trade policies and political influence could further affect Tesla’s future.

Source: https://www.aljazeera.com/news/2025/3/14/musks-never-been-more-powerful-so-why-are-tesla-shares-tanking?traffic_source=rss