During the election season, Tesla and other companies saw a rally in the stock market especially after Donald J. Trump won the November 5 elections, but that is changing now as the electric car company is seeing continued dips. In the latest observation in the market, Tesla saw a further five percent drop, and this is a continuation of its stock’s woes in the industry.
There are now doubts that Tesla’s hype during the election period is coming to an end, but it is not yet over as Elon Musk is close to taking a larger role in the United States government as the head of DOGE.
Tesla Shares Continue Its Dip, 5 Percent More Shaved Off
A new report from CNBC shared that Tesla’s continued drop in the stock market logged a new dip for the company, particularly as it fell 5 percent earlier today during the US premarket trading. This closely followed the recent woes Tesla faced, including the most recent one from earlier this week when the company faced an eight percent drop on Wednesday.
It was revealed by the report that this succession of decline brought Tesla’s “worst day” since its performance saw a massive spike after President-elect Trump won the November elections.
That being said, Tesla’s stock is still seeing a 76 percent improvement for the entire year in its current state despite facing successive dips, and CNBC speculated that it may be because of investors looking to profit from their earlier rally post-election.
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Will Trump’s Future Appointment Change Tesla’s Fate?
After Trump won, Tesla’s stocks continued to soar in the market after the President-elect unveiled more of what his administration will deliver behind the electric vehicle and autonomous driving industry. Since Trump is not yet returning to Washington for his second term, this woes by Tesla may still change, leading the company to improve once the changes take effect.
That being said, Musk’s appointment as the head of the Department of Government Efficiency may also change the hardships Tesla is facing now.
Elon Musk’s Tesla and Trump’s Presidency
Because of Elon Musk’s massive support for Donald Trump and joining the rally for campaigning the Republican politician, Musk is among those who reaped the benefits after the candidate won. Immediately after Trump’s run was declared the winner and Vice President Kamala Harris conceded, Tesla and the Trump Media and Technology Group skyrocketed in the market.
Additionally, there has also been the so-called “Trump Effect” which centers on the many claims by the President-elect on the future changes for the country, especially its massive changes to the electric vehicle market. It is known that Trump is dropping the policies and laws established by the Biden administration, but instead of affecting the industry as a whole, Musk’s Tesla saw a continued rise while its rivals fell.
Despite Trump’s opposition to the EV legislation by POTUS Biden, he would be rallying self-driving technology and helping its adoption in the country with the President-elect’s support for autonomous technology. Tesla, like Elon Musk, is sitting in the middle of the many benefits befalling the Trump administration’s future plans, but while these are not happening yet, the clean energy company’s performance in the market is taking a slight dip.
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