Tesla shares fell below the predicted “it won’t get any cheaper” limit
7 April 20:59
Shares of Tesla Inc. continued to fall on Monday, falling below the level that US Secretary of Commerce Howard Luthnick had previously assured that they would “never fall that low.” This was reported by "Komersant Ukrainian" with reference to Bloomberg.
As of 20:37 Kyiv time, one share of Tesla is worth $231.57 after today’s 7.86% drop. At the same time, on March 19, during an interview with Fox News, Lutnick urged viewers to buy Tesla shares (which were then worth $235.86), assuring that
“they will never be this cheap again.”
The current sharp drop came after one of Tesla’s biggest supporters, Wedbush Securities analyst Daniel Ives, lowered his price target for the company’s shares by more than 40%. The reason for this decision was the Trump administration’s trade policies and the brand crisis caused by Musk himself.
Tesla shares have already lost 55% from their December all-time high. Initially, the company’s stock rose rapidly after Donald Trump won the presidential election, as many investors expected Musk’s closeness to the newly elected president to have a positive impact on Tesla’s business. Instead, Musk’s involvement in political controversies both in the US and abroad alienated some potential car buyers and provoked protests against the company.
Last week, Tesla published a report on car deliveries for the first quarter, which did not reach even significantly lowered expectations, falling to the lowest level since 2022. JPMorgan Chase & Co.’s Ryan Brinkman, one of the most pessimistic analysts on Tesla shares, said he may have underestimated the extent of the consumer backlash and “unprecedented brand damage.”
In recent weeks, many analysts have lowered their forecasts for Tesla’s sales and earnings even before the company released its weak delivery numbers. And while Tesla is considered relatively immune to the 25% tariffs on imported cars announced by Trump, Musk himself warned that the company would not be unscathed.
“The tariffs in their current form will disrupt Tesla’s operations, overall supply chain, and its global presence, which has been a clear advantage over rising competitors like BYD for years,”
– Wedbush’s Ives said in a research note to clients on Sunday.
According to Ives, an even bigger problem is Tesla’s position in the Chinese market:
“The implications of Trump’s tariff policy in China and his association with Musk cannot be overstated – it will further encourage Chinese consumers to buy domestic cars from manufacturers like BYD, Nio, Xpeng and others.”
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Tesla’s fall
reported that Elon Musk suffered the most from Trump’s trade wars in the world, and he lost on Tesla shares. As of the beginning of March, the entrepreneur’s wealth has decreased by $116 billion since the record high of $464 billion, which was recorded on December 17, when Tesla shares reached a historic high of $480 per share.
However, after that, Tesla began to lose ground in the market: the current price of $231 is a 50% loss from the highest historical value of the stock.
The reason for Tesla’s fall was the overall negative dynamics of the markets after the Trump administration imposed new tariffs on Canada, China, and Mexico. However, Musk is probably not discouraged and plans to capitalize on government contracts after losing hundreds of billions of dollars.
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