(BFM Stock Exchange) – The automotive group is still suffering from Wall Street on Monday, dropping more than 8% at the start of the session. The title has now lost all the gains on the stock market that the Trump election had previously enabled it to garner.

The road exit is more and more violent for Tesla. The electric car manufacturer still drops 8.4% this Monday at the start of the session on Wall Street at the start of the session on all of 2024 to almost 40%.

Tesla has now erased all of her post-election rally by Donald Trump. Between the day of the election of the republican at the White House and the end of December, the Tesla title had climbed approximately 84%. Investors then hoped that the Trump administration sets up measures favorable to the automotive group, especially in the autonomous vehicle.

All these gains have now been deleted, the action of the group led by Elon Musk having dropped to 242.13 dollars, against 251.44 dollars at the end of November 5, 2024, the day before Donald Trump’s victory in the presidential election.

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Sales collapse in China

To return to the fall on Monday, several elements can explain it. First, the whole tech suffers from Wall Street, the composite Nasdaq losing 3.2% at the same time. The compartment has been experiencing for several weeks with a “rotation”, that is to say that investors redirect their funds to other sectors deemed more promising than tech, especially on European actions.

These fears can be fed on Monday by the fact that Donald Trump warned during the weekend that the American economy could experience a “transition” caused by his customs surcharges.

“Fears about the American economy and political uncertainty generate rotations to the detriment of American technology value,” said Ostrum Asset Management in a note.

Tesla also has its share of bad news this Monday. The automaker has delivered its vehicle sales to individuals (excluding export) in China for the month of February. According to these figures, cited by Royal Bank of Canada, the number of vehicles sold over the second month of the year has established 3,911 units, marking a dive of 87% over a year.

“This figure marks the lowest monthly sales of Tesla since August 2022. On the other hand, the Chinese competitor byd recorded an increase in sales of 90 % in annual shift during the same period, reaching 614,679 units,” said Royal Bank of Canada.

“Although the months of January and February are seasonally lower, the sharp decline in annual shift growth growth could be a sign of a problem of trust that currently affects the company, in addition to the production reductions related to model Y, as we have seen in registration figures in the United States and the European Union,” continues the Canadian Banque.

Harmful political ambitions?

These figures succeed, in fact, bad sales in Europe, where Tesla registrations fell 45.2% (including the European Union, the United Kingdom, Switzerland and Norway) in January.

According to Barrons, the UBS bank, this Monday, clearly lowered its forecast of deliveries of Tesla cars for the first quarter, to 367,000 vehicles against 437,000 previously. The Swiss Bank is counting on 1.7 million Tesla delivered this year, against 2 million for consensus.

Tesla is penalized by an aging range of products. The group has promised that new “more affordable” models would be launched this year.

Since the beginning of the year, the Tesla action has also been penalized by Elon Musk’s political ambitions, which has decided to pilot an unofficial department in Washington to cut the ax in the expenditure of the American federal state, have been able to worry investors. This department is called “Doge” for “Department of Government Efficiency”.

“Wall Street’s concern is that Musk devotes as much time (even more than expected) to Doge, to the detriment of Tesla, at a crucial time for the company,” said Dan Ives de Wedbush in February.

“The battle for autonomy and robotics for market share is booming in the United States and China, and many observers consider that the fact that Musk devotes 100 % of his time ‘to DOGE creates a negative perception of the attention he carries to Tesla,” he added.

A fear that was also raised this Monday by the secretary general of the association of Chinese car manufacturers, Cui Dongshu. Cited by Bloomberg, the manager warned, at a press conference, that an entrepreneur must take 100% of the market and avoid getting half “people” because of his political actions or opinions. A barely veiled reference to Elon Musk.