2 Stocks That Plummeted During President Trump's First 100 Days in Office, and Where They Could Be Headed

Published: Thursday, May 15, 2025 at 8:55 am

Tesla and Eli Lilly: Navigating the Market During Trump's First 100 Days

During President Trump's initial 100 days in office (January 20th to April 29th), the stock market experienced volatility. The S&P 500 and Nasdaq Composite saw declines of 7% and 11%, respectively. This period was marked by various pressures, including geopolitical tensions, tariffs, and the rise of competing AI platforms. This article analyzes the performance of two prominent growth stocks, Tesla (TSLA) and Eli Lilly (LLY), during this time.

Tesla's Rollercoaster Ride: Tesla, closely linked to the Trump administration due to CEO Elon Musk's role in the Department of Government Efficiency (DOGE), initially saw a boost after Trump's election. However, the stock plummeted by 31% during the first 100 days. This decline was fueled by public backlash against Musk's involvement with DOGE and concerns about his divided attention. While Tesla has since rebounded by 9%, rejoining the trillion-dollar market cap club, the article suggests caution. The recent rise is attributed to eased trade tensions between the U.S. and China. The article raises questions about Tesla's ability to navigate the competitive EV market and recover from potential brand damage.

Eli Lilly's Mixed Performance: Pharmaceutical giant Eli Lilly saw a 22% increase during the same period. However, the article highlights underlying pressures. The stock faced challenges for much of the first 100 days before rebounding. The author anticipates potential headwinds due to Trump's hints at tariffs on pharmaceuticals and an executive order aiming to establish "most-favored-nation pricing" for drugs. While the author acknowledges the potential for short-term volatility, they also point out Eli Lilly's diversified operations and global presence, suggesting that long-term investors might consider buying any dips.

BNN's Perspective: The market's reaction to political events is often complex and unpredictable. While the initial impact of the Trump administration on these two stocks was significant, the long-term implications remain uncertain. Investors should carefully consider the specific challenges and opportunities facing each company, as well as the broader economic and political landscape, before making investment decisions. The situation highlights the importance of diversification and a long-term investment horizon.

Keywords: Tesla stock, Eli Lilly stock, Donald Trump, first 100 days, stock market, market volatility, TSLA, LLY, electric vehicles, EV, tariffs, pharmaceutical stocks, Elon Musk, DOGE, market analysis, investment, stock prices, S&P 500, Nasdaq Composite, brand reputation, executive order, most-favored-nation pricing.

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