A broader US stock market wipeout hit after the president refused to rule out a recession and predicted a ‘transition period’
US electric vehicle (EV) manufacturer Tesla saw its value slashed by some 15% on Monday, as part of a massive US stock market sell-off on March 10 that came after President Donald Trump refused to rule out a recession.
Several major indexes slumped, with big tech emerging as the biggest loser.
For Elon Musk’s EV brainchild, Monday’s bloodbath marked its biggest loss in a single day since 2020. Tesla’s woes, however, did not start overnight. The automaker’s share has slid by 50% – representing more than $800 billion in market value – since its December peak.
Speaking to Bloomberg, Michael Rosen, chief investment officer of Angeles Investment Advisors, attributed the market turmoil to Trump’s efforts to “break the international economic regime, presumably with a plan to fix and replace it with something better.”
“Absent a clear idea of what ‘better’ is, investors are just left with the detritus of the broken global economic framework. Unless and until we see what replaces it, investors will be cautious, at best,” he predicted.
Trump refused to explicitly rule out that the US economy is headed for a recession, during an interview with Fox News over the weekend, saying that “there is a period of transition because what we’re doing is very big.”
However, he official expressed confidence that in the end, “it should be great for us.”
Last month Trump announced 25% tariffs on imports from Canada and Mexico, along with 10% duties on Chinese goods. While Trump has since granted several reprieves, Ottawa has nevertheless retaliated with tariffs of its own, as has Beijing.
As for Tesla, aside from the continuous slump in value, it has recently become the target of multiple protests, and even arson attacks on its dealerships.
In a post on X on Monday, Musk pointed the finger at ActBlue, a major Democratic fundraising platform funded by billionaire George Soros among other sponsors.
Trump posted a message in support of the electric car manufacturer on his TruthSocial platform on Tuesday, accusing “Radical Left Lunatics” of “trying to illegally and collusively boycott Tesla.”
“I’m going to buy a brand new Tesla tomorrow morning as a show of confidence and support for Elon Musk,” the US president wrote.
