The US stock market has not been kind to mega-cap companies in the first five months of the year. That has been especially true for the Magnificent 7, as many have not lived up to its 2024 hype. For Tesla (TSLA), it has seen its plummeting market share and increased opposition from US President Donald Trump send the stock below the $305 mark.
Shares in the EV manufacturer had skyrocketed when CEO Elon Musk announced his departure from the Trump Administration’s DOGE commission. Yet, that has now turned sour for the company, as Musk has spoken out against the President’s concerning new tax bill.
Also Read: Tesla (TSLA) Rides 20% Jump: Is Now the Time to Buy, Sell, or Hold?
Tesla’s Plummeting Market Share & Trump Stance Sends Stock Falling
The US stock market continued its volatile year this week amid inconsistent performances across the board. However, Thursday saw things edge a bit higher for the major indexes as the United States and China held a phone call that gave markets hope for an impending trade deal.
However, the reality wasn’t enough to change what has been a bearish reversal for one of the biggest companies in the world. Indeed, Tesla (TSLA) has seen both its falling market share and continued stance opposing the Trump administration push its stock price below the $305 mark.
Also Read: Tesla (TSLA) Chart Gives Bearish Signal: Is Wall Street Worried
The company has seen its sales continue to decline on a global lease. In Germany, they plummeted 36% year over year in May. Even more concerning is that the fall took place as overall electric vehicle sales jumped 45%. Additionally, Tesla shipments to China fell 15%, all the while its overall European sales have fallen drastically.
Additionally, what was a key benefit to Musk and Tesla may not be the opposite. The company skyrocketed when the CEO announced his full-time commitment to the company, leaving his post in the White House. Yet, it has now fallen amid his very public dispute with the administration over the Trump-orchestrated spending bill presently in Congress. Indeed, Musk went as far as to say, without him, “Trump would have lost the election.”
The spat threatens any federal pull Musk would’ve had for his autonomous driving plans that will rely heavily on regulatory involvement. As a result, the stock has dropped over 8% on Thursday, falling to the $304 mark. Additionally, it currently has a $115 bearish projection, representing a 63% downside risk for the company.