Tesla Drops Below Trillion-Dollar Valuation
Tesla stock is down more than 20% so far this year and the company’s market value dropped below a trillion dollars on Tuesday.
The stock had seen a sharp increase following the presidential election, but recent sales declines have started to drag it back down.
After breaking the trillion-dollar mark in November it reached an all-time high of 479.86 on December 17, 2024, but closed on Tuesday down 8.39% to 302.80. After-hours trading indicated it will have a slight recovery when the markets open on Wednesday.
Tesla hasn’t officially released any sales figures in 2025, but independent reports show that registrations are down significantly in Europe and China, two of its biggest markets.
Read Also: TESLA CYBERTRUCK SCORES 5-STAR NHTSA SAFETY RATING
Speculation is that much of the decline is due to backlash against Elon Musk’s recent political activities, but Tesla is also in the process of launching a redesigned version of its best seller, the Model Y.
Tesla said it will launch a new entry level Model Q, plus a Robotaxi service and the two-seat vehicle that will service it later this year. It has also hinted that updated versions of the Model S and Model X are also on the way.
CLICK HERE TO SUBSCRIBE TO THE FREE AMERICAN CARS AND RACING NEWSLETTER
Much of Tesla’s valuation is based on the prospects of fully autonomous driving, which it has not yet released to the public, and the potential of its Optimus humanoid robots, which Musk said will begin being used for factory tasks sometime in 2025.