Elon Musk-led Tesla saw a sharp fall in its share price on March 10, declining by over 15 percent in a single day. This was the company’s worst trading session in more than four years, wiping out $125 billion in market capitalization. The one-day loss in Tesla’s value is higher than the combined market worth of Indian automakers Maruti Suzuki, Tata Motors, and Mahindra & Mahindra (M&M).
The stock’s steep fall came as part of a broader selloff in the US market, with the Nasdaq Composite index tumbling 4 percent. Several factors contributed to Tesla’s stock crash, including weak demand, reduced delivery projections, and growing concerns about Musk’s political involvement.
Musk Admits Running Tesla and Other Businesses with Difficulty
In an interview to Fox News, Elon Musk explained that it had become increasingly complicated to manage his six ventures, including Tesla. Being the public face of the Department of Government Efficiency (DOGE) contributed to the pressure. Musk admitted that it had become complicated to keep all these things in hand, which gave investors concern over his focus on Tesla’s business.
Another issue to investors is Elon Musk’s increased political engagement in the US. China’s Passenger Car Association, or CPCA, commented that the political ties of Musk may have a negative impact on the sales of Tesla, particularly in China, where the company is already struggling to obtain permission to have semi-autonomous driving capabilities.
Tesla’s sales in China and Europe have also been a source of investor concern. The delay in getting approval to market its semi-autonomous technology in China is also taking a toll on market sentiment. In addition, the trade tariffs imposed by US President Donald Trump on China’s imports are also expected to weigh on the electric vehicle business of Tesla, leading to more concerns about its outlook.
The combination of these factors has resulted in one of the worst trading days for Tesla, leaving investors cautious about the company’s near-term outlook.
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Source: Moneycontrol.
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