Tesla stock dropped more than 1% in premarket trading, erasing earlier gains.

Shares finished 11.9% Monday. The stock notched its best day since Nov. 6, 2024, the day following President Donald Trump’s victory in the election, making it the best-performing stock in the S&P 500 for the day. Nonetheless, shares are still trading more than 44% below their all-time high from December. 

The stock has sold off heavily over the past few months amid rising consumer boycotts and plummeting demand globally due to Musk’s rise as a right-wing political figure. There have been multiple incidents of vandalism and arson across Tesla showrooms and charging stations in the U.S. and Europe. 

Morgan Stanley recently cited this trend as it slashed its first-quarter delivery estimates. It now predicts a decline of 9% year over year, due to negative brand sentiment and more intense competition.

Tesla shares also benefited from an uptick in broader market sentiment Monday, after The Wall Street Journal reported Trump’s reciprocal tariffs starting April 2 may be more targeted than previously expected. Tariffs on industrial sectors are now unlikely to be announced then, the report stated. Certain nations may also be excluded from the tariffs, according to a separate report from Bloomberg. Both the Journal and Bloomberg reports noted that the situation remains fluid and the plans could change.

Tesla sales crashed by 47% in Europe during February, a second straight calamitous month of sales on the Continent for the electric vehicle maker run by Elon Musk.

Tesla’s sales decline came against a market that overall saw sales dip by 3% as sales for battery electric vehicles saw a 24% improvement, according to data from the European Automobile Manufacturers’ Association, or ACEA.

Tesla sales through the first two months of the year are down 49%. Some of Tesla’s sales decline is attributed to customer revulsion to Musk’s politics, as the prime backer of U.S. President Donald Trump as well as a supporter of the far-right Alternative for Deutschland party, though the company is also overhauling its most popular car, the Model Y.

Volkswagen’s BEV sales soared 180% last month in Europe, according to separate data from Jato Dynamics.

Musk recently addressed the heavy sell-off to Tesla employees. At an all-hands meeting last Thursday evening, Musk told employees to “hang onto your stock.” He also stated the company’s signature Model Y would be the “best-selling car on Earth again this year.”