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Tesla shares plummeted on Monday, the biggest day drop in years amid concerns about a potential recession and uncertainty against the president Donald Trump's Customs plan.
Tesla stocks fell 15.4% during Monday's trading session amidst weaknesses in the electric vehicle (EV) industry. This was the largest daily rate decline since September 2020, when the day fell by more than 21%.
In 2025, Tesla stocks fell 41.4% since the start of the year. This includes a decline of more than 36.6% over the past month. Since reaching its largest market capitalization in history on December 17th, Tesla has fallen more than half from its new market capitalization of $69.6 billion as of March 10th.
UBS cut its first quarter delivery forecast. This contributed to the sale, along with widespread concerns from the US economy over the recession and the growing trade war that comes with Trump's tariff threat. The Dow Jones industrial average fell by 890.01 points, or 2.08%, while the Nasdaq Composite and S&P 500 slid 4% and 2.69%, respectively.
Stocks have fallen into the fear of a recession, and Trump's tariff uncertainty
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| TSLA | Tesla Inc. | 222.15 | -40.52 |
-15.43% |
Tesla's slide comes as CEO Elon Musk assumes a key advice role with the Trump administration as the de facto leader of the government's Department of Efficiency.
Musk is the CEO of Aerospace Firm SpaceX, an artificial intelligence startup Xai, and is also a prolific poster for X, the social media platform he owns.
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Tesla CEO Elon Musk has focused on his role in the Trump administration in recent months. (Reuters/Mike Blake/File)
Last year, Musk has been promoting Tesla's pivot towards Robotaxis, away from mass production of “Model 2” vehicles, which costs around $25,000, for consumers. Currently, the company aims to run autonomous Robotaxis in Austin, Texas by June.
His pivot to the Robotaxi plan helped to drive a 71% increase in the company's stock from lows in 2024 in April to lows in 2024 from the November election, even if EV sales stagnate and profits fell.
Tesla stocks have more than doubled in the weeks since Trump's election. This was supported by Musk by spending more than $250 million. Stock prices have generally collapsed since Trump took office on January 20th.
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(Justin Sullivan/Getty Images/File)
Automakers are also facing headwinds from the Trump administration's policies as the White House opposed the types of EV tax credits and subsidies offered by the Biden administration, helping make EVs more affordable for consumers. Musk dismissed the impact of lost grants on Tesla, saying the change would hurt his rivals more.
In view of broader market economic concerns, Trump on Sunday refused to explicitly rule out a full-scale recession in the US economy, informing Maria Baltiromo.Sunday morning future“An exclusive interview that as his policies become effective, the country sees a 'transition period'.
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“I hate predicting such things,” Trump said of the recession. “What we're doing is so big, so there's a transition period. We're bringing wealth back to America. That's a big thing… It takes a little time, but I think it should be great for us.”
Matt Kazin and Reuters of Fox Business contributed to this report.
