Tesla shares a downturn after European sales drop

EU and UK sales fell nearly half in January, with shares of electric vehicle maker Tesla falling more than 9%.

The decline in Tesla’s stock has brought the company’s valuation to below 1TRN for the first time since November 2024.

Tesla has been facing fierce competition from China and other manufacturers in the European market.

In addition, Tesla boss Elon Musk has caused a controversial political wave on both sides of the Atlantic Ocean, an analyst said.

Tesla sales lowered European electric vehicle sales trends in January, which grew more than a third of the month According to the trading system acea.

Instead, Tesla’s sales across the EU, EFTA and the UK fell by more than 45%, and in the EU alone it was more than 50%.

This comes after Tesla sales fell for the first time last year in more than a decade As demand falters, competitors are on the pace.

Russ Mold, investment director at AJ Bell, said the main factors of the downturn in January could increase competition.

Moore said Chinese manufacturer Bit has been making great strides, partly because it standardizes some of the features, while other manufacturers have additional expenses.

However, some car buyers may also take a “principle stance” about Musk’s political intervention, he said.

Musk was waving the wave in the United States by participating in cutting U.S. development funds and significantly reducing U.S. federal funds.

In the UK, he supported the imprisoned far-right activist Stephen Yaxley-Lennon, also known as Tommy Robinson, and repeatedly criticized Prime Minister Kyle Stah for his role in criticizing Prime Minister Kyle Stahl Sir Keir Starmer.

Musk also supported Germany’s far-right AFD party and congratulated its leaders after the party won the second place in the election.

Asked if the reason for Tesla’s stock price sluggish is attributed to Musk’s overly toxicity, a senior director of the automaker’s European, Middle East and Asia division, he said it was “definitely one of the reasons for the decline.” ”, but adds that it is “the accumulated stuff piles up the domino effect”.

Peter Bardenfleth-Hansen told the BBC’s Today show that there is no doubt that his flirting with political rights has not completely helped his image. ”

“He might get a bigger fan base in a specific type of customer base, but they’re not the fan base that buys Teslas. They’re not the ones who put money into his company. So he has a problem.”

Tesla stock has gained a lot of push after the U.S. election thanks to Musk’s close relationship with Donald Trump – Musk described himself as the “first partner” of the U.S. president.

Investors believe this will keep his business in good shape.

But Trump is not a supporter of electric vehicles and he said he would cancel efforts to increase his ownership.

“I don’t know, how anyone thinks it will be good for Tesla,” Moore said.

He added that concerns about the path to lower interest rates and concerns about Trump’s tariff plans could lead to a fall in the general market.