Few stocks have been as divisive in recent months as Tesla Inc (NASDAQ: TSLA). After surging to an all-time high in December on the back of CEO Elon Musk’s closeness with President Trump and renewed optimism around its longer-term growth prospects, shares have since crashed, shedding 55% in just three months. Tesla is now back to 2020 price levels, erasing years of gains despite still being dominant in the EV market.
The company’s most recent earnings report at the end of January did little to restore investor confidence. Tesla missed expectations on both revenue and earnings per share and, for the first time in its history, reported a decline in annual vehicle deliveries. That alone would have been enough to put pressure on the stock, but a worsening macroeconomic environment and a clear shift away from high-risk growth stocks have compounded the selloff.
