Tesla stock hit hard as market drops

Alissa Coram with Investor’s Business Daily joins LiveNOW from FOX to discuss recent movement in the stock market after the jobs report, including uncertainty around the Trump administration tariffs and other monetary policy decisions. Tesla’s stock dropped 12% on Monday, deepening its 2025 loss to over 40%. The broader stock market also struggled, with the S&P 500 down 2.

2% Monday, amidst worries over the economy and ongoing uncertainty caused by Trump’s tariffs. NEW YORK - Elon Musk’s Tesla deepened its loss for 2025 on Monday, following an initial post-election bump on hopes that Musk’s close relationship with President Donald Trump would help the electric vehicle company. By the numbers: The automaker fell 12% to widen its loss in 2025 to more than 40%.



The stock has since slumped, in part, on worries that its brand has become intertwined with Musk. Protests against the U.S.

government's efforts to cull its workforce and other moves have targeted Tesla dealerships, for example. Some Tesla investors may also be concerned that Musk isn’t committing enough time to the company in his CEO role. Elon Musk and Vivek Ramaswamy will lead the newly formed "Department of Government Efficiency" also known as "DOGE" under Trump's administration.

LiveNOW's Andrew Craft discusses what the new department will do with Jon Swartz, a senior writer for TechStrong Group.. The billionaire entrepreneur was tapped by Trump to oversee the Department of Government Efficiency (DOGE) with a mission to reduce wasteful spending and "maximize governmental efficiency and productivity.

" RELATED: Elon Musk serving as 'special government employee' – what does that mean? By the numbers: The S&P 500 was down 2.2% in afternoon trading, coming off its worst week since September . The Dow Jones Industrial Average was down 530 points, or 1.

2%, as of 12:56 p.m. Eastern time, and the Nasdaq composite was 3.

6% lower. The main measure of the U.S.

stock market is on track for a seventh swing of more than 1%, up or down, in the last eight days following a stretch dominated by Trump’s on -and- off -again tariffs. Low-angle view of the facade of Tesla Motors dealership with logo and sign in Pleasanton, California, July 23, 2018. (Credit: Smith Collection/Gado/Getty Images) The worry is that the whipsaw moves will either hurt the economy directly or create enough uncertainty to drive U.

S. companies and consumers into an economy-freezing paralysis. The S&P 500 is down 8% from its all-time high set on Feb.

19. Big picture view: The economy has already given some signals of weakening, mostly through surveys showing increased pessimism . And a widely followed collection of real-time indicators compiled by the Federal Reserve Bank of Atlanta suggests the U.

S. economy may already be shrinking. Meanwhile, in a FOX News interview, Trump responded to a question about the possibility of a recession.

"I hate to predict things like that," Trump said. "There is a period of transition because what we’re doing is very big. We’re bringing wealth back to America.

That’s a big thing." He then added, "It takes a little time. It takes a little time.

" The U.S. job market is still showing stable hiring at the moment, to be sure, and the economy ended last year running at a solid rate .

But economists are marking down their forecasts for how the economy will perform this year. What they're saying: At Goldman Sachs, for example, David Mericle cut his estimate for U.S.

economic growth to 1.7% from 2.2% for the end of 2025 over the year before, largely because tariffs look like they’ll be bigger than he was previously forecasting.

He sees a one-in-five chance of a recession over the next year, raising it only slightly because "the White House has the option to pull back policy changes" if the risks to the economy "begin to look more serious." "There are always multiple forces at work in the market, but right now, almost all of them are taking a back seat to tariffs," according to Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley. The Associated Press, previous FOX TV Stations reporting contributed to this story.

This story was reported from Los Angeles..