$125 billion m-cap gone in a day! Why Elon Musk-led Tesla shares crashed 15%

Elon Musk-led Tesla saw a sharp decline in its share price on March 10, crashing over 15 percent to record their worst day in more than four years. The company lost a whopping $125 billion in market capitalisation in one day as a result of the selloff. Notably, this one-day loss in Tesla stocks is higher than the combined valuation of Indian automakers Maruti Suzuki, Tata Motors and Mahindra & Mahindra (M&M).

The crash in Tesla's share price comes amid a broader selloff in the US market. The Nasdaq Composite index tumbled 4 percent to 727.90. Tesla's shares plunged due to several factors:

Musk says he is running his businesses with 'great difficulty'

World's richest person Elon Musk said he has been running his six businesses, including Tesla, with "great difficulty". Speaking at an interview with Fox News, Musk said his role as the public face of the Department of Government Efficiency (DOGE) has taken a toll on his businesses. "I can't believe I am here doing this. It is kind of bizarre," Musk said.

UBS slashed delivery projections, target price for Tesla

UBS Group AG's Joseph Spak reduced his delivery projections for Tesla in FY26, as well the first quarter of the upcoming financial year. He maintained his 'Sell' rating on the stock and reduced the target price to $225 per share from the earlier $259 apiece. Spak estimated Tesla to deliver 3.67 lakh vehicles in Q1 FY26, down from the earlier estimate of 4.37 lakh vehicles. This represents a fall of 5 percent YoY from the deliveries recorded in Q1 of FY25. He further highlighted that there are signs the demand for Tesla's products is weakening.

Musk's political affiliations hurting Tesla?

Investors also remained concerned whether the growing participation of Elon Musk in the political landscape of US is hurting the company. China's Passenger Car Association (CPCA) said his growing involvement in politics could be damaging Tesla’s already struggling electric vehicle sales.

Declining sales in Europe, China amid tariffs

Some market experts also anticipate that the delay in receiving approval for introducing Tesla's semi-autonomous features in China will also negatively impact the company's stock price. Additionally, the decline in sales in Europe and China, amid US President Donald Trump’s harsh tariffs, also is expected to affect the automaker.

(With inputs from Reuters)Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before making any investment decisions