Tesla shares sank 8% on Tuesday 25th February 2025 and have now lost most of their gains that followed President Donald Trump’s election victory in November 2024.
The stock has plunged 25% this year, while the Nasdaq is down 1.5%.
It was also reported on that the company’s long-awaited upgrade of its partially automated driving system in China left owners unimpressed.
Tesla 3-month chart as of 25th February 2025
Bump to slump?
The ‘Trump Bump’ – a term referring to the surge in stocks and other assets, such as cryptocurrency, following Donald Trump’s election and inauguration seems to have plateaued.
This is most evident in Tesla shares, which plummeted Tuesday 25th February 2025, wiping out most of the post-election gains linked to CEO Elon Musk’s association with Trump.
Concerns about Tesla pertain to the company’s and Musk’s significant amount of time spent in Washington, D.C.
Investors are increasingly worried about impact of Trump’s tariffs on the economy. A U.S. Conference Board survey indicated pessimism regarding job availability, business conditions, and future income, along with heightened expectations for inflation in 2025.
The 10-year Treasury yield, considered an indicator of growth expectations, declined on this news. Stocks continued to fall. If this trend does not reverse soon, we could be facing a ‘Trump Slump.’