Since hitting a record high of $479.86 in December 2024, Tesla's stock price has continued to decline and has now fallen by 40%. Investors have suffered heavy losses, and a Tesla 3x leveraged ETF has plummeted more than 80% from its December high. Due to slowing sales and a series of "mysterious operations" by Musk in politics, Tesla's stock fell below the $1 trillion market value level, almost erasing all the gains since Trump's election.

Data shows that since hitting a record high of $479.86 in December 2024, Tesla's stock price has continued to decline and has now fallen by 40%. Yesterday, Tesla’s US stock closed at $281.95.


The sharp drop in stock prices caused Tesla investors to suffer heavy losses, and the Korean market was even more severely affected. According to data from three Korean brokerages compiled by Bloomberg, as of February 21, Korean investors held approximately 358 billion won (US$245 million) in the London-listed Tesla 3x Leverage ETF (LeverageShares3xTeslaETP), accounting for more than 90% of the fund’s assets.This product has plummeted more than 80% from its December high.

In addition, Korean investors also hold approximately US$1.5 billion in the US-listed Tesla 2x Leveraged ETF, accounting for 43% of the fund's total assets. Its value has also shrunk by nearly 70% from its peak on December 17.

Analysis pointed out that there are multiple factors behind Tesla’s decline:

Tesla’s fourth-quarter results and deliveries fell short of expectations, with full-year deliveries experiencing a historic decline for the first time;

Product Cybertruck was forced to cut prices due to weak demand;

Sales in the European market fell sharply in January;

and the U.S. National Highway Traffic Safety Administration (NHTSA) investigating its autonomous driving functions.

In addition to these, another “culprit” is Musk’s political activities. After Trump won the election, Musk was appointed as the head of the Department of Government Effectiveness (DOGE). This was originally regarded as good news by the market, which was believed to help Tesla break through regulatory barriers to autonomous driving technology, and the stock price also rose sharply.

However, with DOGE implementing a series of controversial policies in the United States and Musk supporting far-right political movements abroad, analysts believe that,These have the potential to alienate a large number of potential customers and make investors question its focus on running the company.

However, judging from the company's own technological breakthroughs, investors still seem to be hopeful. It is reported that Tesla has launched an upgraded version of Model Y and is expected to release a more affordable electric model in the first half of this year. It plans to start paid unsupervised robotaxi testing in Austin, Texas in June.