-15% in one day

Tesla shares continue to plummet, Musk sighs

The tech billionaire is known for collateralizing loans with his Tesla shares, making him by far the richest person in the world, at least on paper.

(Bild: Krone KREATIV/AFP)

The shares of electric car manufacturer Tesla, led by Elon Musk, have fallen by more than 15 percent in one day - and have thus also lost the last price gains following the US presidential election in November.

When asked in an interview with "Fox Business" how Musk manages his companies alongside his work as a government advisor and head of the Department of Government Efficiency (Doge), Musk replied: "With great difficulty" and sighed. Musk's role as head of the Department of Government Efficiency has led to "Tesla Takedown" protests against the car manufacturer in the US in recent weeks. In Europe, where Elon Musk supports far-right parties, Tesla's car sales slumped by 45 percent in January compared to the previous year.

Musk had become a close ally of the ultimately victorious Republican Donald Trump during the US election campaign. Following his triumph in the presidential election, Tesla shares soared. At its peak in mid-December, it was worth around twice as much as on election day on November 4. A downward slide then set in, which recently became steeper.

(Bild: ALLISON DINNER)

Investors looked past weaker figures
Tesla closed 2024 with the first decline in deliveries in more than a decade, although Musk had previously forecast an increase. However, the tech billionaire is tempting investors with the prospect of big business in self-driving cars and humanoid robots. Although it is not certain that Tesla can be successful in either area, investors have so far overlooked the current business and are valuing the company much higher than other car manufacturers.

In mid-December, Tesla was worth more than 1.5 trillion dollars at a share price of around 480 dollars. Now the stock market value has fallen from just over 222 dollars to around 715 billion dollars (659.29 billion euros). By comparison, the US car giant Ford is worth just under 40 billion dollars on the stock market, and its rival General Motors just under 48 billion.

(Bild: AP(Rodrique Ngowi)

Musk's fortune depends on Tesla share price
A significant fall in the Tesla share price could also become a problem for Musk personally. The tech billionaire is known for collateralizing loans with his Tesla shares, making him by far the richest person in the world, at least on paper. In such transactions, collateral often has to be provided if the share price falls below certain thresholds. The Bloomberg financial service still estimates Musk's assets at a good 300 billion dollars.

Proximity to Trump drove up share price
After the election, some market observers assumed that Musk's proximity to the US president could bring benefits for Tesla. Trump made him a cost-cutter on behalf of the US government and gave him far-reaching powers. The president said that no conflicts of interest would be allowed.

Among other things, Tesla's Autopilot assistance system is the focus of several investigations by the National Highway Traffic Safety Administration (NHTSA) following accidents. The authority would also play a key role in the approval of the self-driving robotaxis envisaged by Musk. He wants to dispense with the more expensive laser radars and rely solely on cameras for the self-driving cars. However, many experts believe that laser radars are essential if self-driving cars are to be safe on the roads. Google's sister company Waymo also uses such technology in its reliably functioning robotaxis.