Tesla shares sank overnight following news its sales had plummeted amid a backlash against Elon Musk’s interference in European politics.
As of last night’s US close, Tesla is no longer a trillion-dollar market-capitalised company after its shares fell over 8%.
Tesla’s European sales tanked a whopping 45% in January compared to the same month a year ago. The painful thing for Tesla and its investors was the rejection of Tesla, which was underscored by a dramatic rise in competitor EV registrations. It appears there is strong demand for EVs across Europe, but consumers are now looking past Teslsa to different manufacturers.
Musk’s antics have accelerated the decline of Telsa’s strength in Europe. Competition in the EV space has been heating up for some time, with China’s BYD eating up market share with better-valued stylish models. Rivian is also making inroads into Europe and proving to be more of a thorn in Tesla’s side.
Although the chainsaw-wielding billionaire will be concerned about the decline in sales, Musk’s focus has shifted to autonomous vehicles and establishing a global robotaxis business that could far outstrip his EV business.
However, investors may be worried that Musk is becoming distracted by his new friend in the White House. Musk has traditionally been deeply involved in driving his businesses forward, and with more time being spent at the newly formed DOGE, he will be unable to dedicate as much time to his business interests.