Tesla Shares Plunge as Elon Musk’s Political Role Grows More Divisive
Summary
Tesla shares plunged on Monday, hitting their lowest point since before Election Day, as investors registered the impact of falling sales and increasing protests over the high-profile political role that Elon Musk, the company’s chief executive, has taken on. In midday trading, the electric-car maker’s shares were down more than 11 percent for the day, and more than 50 percent from a mid-December peak. The day’s loss far outstripped the 2 percent drop in the S&P 500. The steep rise in Tesla shares that followed Donald J. Trump’s election as president, and Mr. Musk’s appointment as de facto government cost-cutting czar, has evaporated along with more than $700 billion in stock market value. Investors had hoped that Mr. Musk’s financial support for the Trump campaign and his ties to the White House would benefit Tesla, helping to clear regulatory hurdles to the company’s autonomous driving technology.