Tesla shares fell sharply on Monday, after which investors again recalled a month-old statement by former President Donald Trump’s Commerce Secretary, Howard Lutnick. It is worth noting that last month, Tesla’s shares fell sharply due to protests around the world over Elon Musk’s association with the Trump administration.
Tesla shares fall sharply, ‘Black Monday’ scene:
On Monday, Tesla’s share price reached $214.80, while Lutnick had said last month at the level of $235.86 that this stock would not go below this and investors should buy it.
Speaking on Fox News in March, Lutnick said, “If you want to learn anything from this show today, it is to buy Tesla’s shares. It is unbelievable that the stock of this company is so cheap. Betting on Elon Musk is the best option.”
However, Tesla’s share price continued to fall on Monday. The stock opened at $223 and rose to $244 by 10:15 a.m., but was back at $225 by noon.
Elon Musk opposes Trump’s tariffs:
Meanwhile, Elon Musk has distanced himself from the Trump administration’s tariff policy and even criticized Trump’s trade adviser Peter Navarro. Musk has advocated a zero tariff deal with Europe, while the Trump administration has imposed a 20% tariff on the EU.
“In my opinion, both Europe and the US should move towards a zero tariff situation, creating a free-trade zone,” Musk wrote in a post.
Navarro responded to this by saying that Musk is a car manufacturer and he is saying this because of his business interests.
Investors are in panic:
The continuous fall in Tesla shares has created panic among investors. Many analysts believe that Musk’s involvement in political controversies and the growing global pressure on Tesla remain a matter of concern for the company’s shares.
Now it remains to be seen whether this decline in Tesla shares will continue or the company will be able to recover from it soon.
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