Tesla electric cars are parked in the parking lot of the Tesla Gigafactory Berlin-Brandenburg.
Patrick Bliol | Image Alliance | Getty Images
shares Tesla The electric car maker's stock continued to decline on Friday, in what appeared to be a case of investors taking profits from the electric car maker's wild post-election rally.
As of approximately 6:30 a.m. ET, the company's shares were down about 5% in U.S. pre-market trading, extending losses from earlier in the week. On Wednesday, Tesla shares fell 8% to mark their worst day since the previous Donald Trump Winning the presidential election in November.
Trump's victory led to a sharp rise in Tesla shares, as investors increased their bets that the electric car company would benefit thanks to the close ties between its CEO Elon Musk and the president-elect. The stock is still up about 65% since the market closed on November 5 – the night of the US presidential vote.
Musk was appointed by Trump to co-lead the newly created group Government Efficiency Departmentalso referred to as “DOGE”. The acronym for the proposed Presidential Advisory Committee shares the same name as the internet meme that inspired the so-called “memecoin” cryptocurrency, dogecoin.
Dogecoin Its price rose for a short time After creating the body.
Musk was a major supporter of Trump during the GOP campaign, primarily pouring $277 million into his campaign efforts, according to Federal Election Commission filings. Musk is The richest person in the worldwith a net worth of $439.4 billion, according to Forbes data.
Last month, Bloomberg News reported that Trump's transition team was planning to pursue a federal framework for regulating self-driving vehicles.
Tesla and Trump's transition team did not immediately respond to CNBC's request for comment on the report.
If true, the move would provide a major boost to Musk's electric car company. Tesla is betting its future on the idea of introducing huge fleets of self-driving vehicles, known as “Robotaxi” services. At the company's “We Robot” event in October, Musk said The company unveiled the self-driving Cybercab concept car.
Tesla has Musk's company has yet to deliver on its promise of truly self-driving vehicles. Tesla's Autopilot and paid “full self-driving” services still require a human behind the wheel to oversee the system's actions and take over if necessary.
In other Tesla-related news, data released by the European Automobile Manufacturers Association on Thursday showed that Tesla vehicle sales fell 40.9% in November, outpacing the overall 9.5% decline in sales of battery electric vehicles in the bloc.
Separately, Tesla also said on Friday that it was recalling nearly 700,000 vehicles in the United States due to an issue with its tire pressure monitoring system. However, software-related recalls are not a big problem for Tesla, as it can issue updates “over the air” to fix these issues.
