Tesla shares plummeted 15.43 per cent on Monday, marking their worst trading day since September 2020 and contributing to a broader US market decline. The EV maker’s stock closed at $222.15, with after-hours trading pushing it down further to $215.01.

According to Trivesh D., COO Tradejini, “The U.S. stock market experienced a significant sell-off, with major indices like the S&P 500 declining by 2.7 per cent—a drop of nearly 9 per cent from its February 19, 2025, peak—losing almost 250 points in a single day. The Dow Jones Industrial Average also plummeted by 900 points as of March 10, 2025. It is a drop which is driven by multiple factors, including trade policy uncertainties and fears of a potential recession.”

The sell-off extended Tesla’s losing streak to seven consecutive weeks, the longest since its 2010 Nasdaq debut. Since reaching $479.86 in December, Tesla has lost over 50 per cent of its value, erasing more than $800 billion in market capitalization.

The decline came as UBS analyst Joseph Spak cut Tesla’s Q1 delivery forecast by 16 per cent to 367,000 vehicles and projected a 5 per cent annual sales decline for 2025. European sales reportedly dropped approximately 50 per cent in January compared to last year.

The broader US market also suffered significant losses, with the S&P 500 falling 2.7 per cent, down nearly 9 per cent from its February peak, while the Nasdaq dropped nearly 4 per cent in its sharpest decline since 2022. The Dow Jones Industrial Average plummeted 900 points.

“However, the primary concern has been the ongoing back-and-forth tariff announcements, which have unsettled investors and further dampened market sentiment. Concerns about a possible economic slowdown—or even a recession—have added to the turmoil, with the technology sector being the most affected. Furthermore, with U.S. President Trump firm on imposing reciprocal tariffs starting in April, volatility is expected to remain elevated despite near-term risks,” said Trivesh D.

Market volatility has been driven by multiple factors, including President Trump’s planned reciprocal tariffs set to begin in April, trade policy uncertainties, and growing recession fears. Technology stocks have been particularly hard hit as investors unwind risk positions amid economic uncertainty.