Tesla share price is down by 30 per cent for year. Is Elon Musk responsible for EV maker's US stock market downfall?

Tesla share price rose 10 per cent on Monday but the electric vehicle maker's stock is still down about 30 per cent for the year. While traders also took advantage of the near 40 per cent decline in the stock so far this year to buy into the EV maker, there are worries that customers are turned off by CEO Elon Musk’s leading efforts to slash spending by the U.S. government.

However, on Monday, Tesla was on track to record its biggest one-day percentage jump since November 6 - when Trump won the U.S. presidential elections - if current gains hold. The shares skyrocketed after Trump's election in November on hopes it would be easier for Tesla to roll out robotaxis under the new administration.

Earlier in March, Tesla stock witnessed its worst one-day drop in four-and-a-half years.


J.P.Morgan has cut its price target on Tesla's stock as the brokerage expects a second straight year of lower deliveries, with analysts also pointing to a change in sentiment toward the EV maker from existing customers and potential new buyers.

There have been reactions toward the brand such as protests at Tesla stores across the U.S. and around the world, sales boycotts, and jettisoning already purchased vehicles in the second-hand market, the brokerage said.

J.P.Morgan also cut its price target on the electric-vehicle maker's shares to $120 from $135. The median target for the stock is $370, according to LSEG data.

The brokerage said it expects Tesla to deliver about 1.78 million vehicles this year, down about 1 per cent from 2024, Reuters reported.

President Donald Trump appointed Musk to lead efforts to downsize the federal government, which has thousands of workers in the nation's capital.

Trump tapped Musk to lead a task force dubbed the Department of Government Efficiency (DOGE), which so far has overseen cuts of more than 100,000 jobs across a federal civilian workforce of more than 2 million people. DOGE has also pushed for the freezing of foreign aid and the canceling of thousands of programs and contracts.

FAQs

Q1. Who is President of USA?
A1. President of USA is Donald Trump.

Q2. Who is heading Tesla?
A2. Tesla is headed by Elon Musk.