3 sources·Business

Tesla Shares Plunge Over 25% Amid Slumping Sales and Controversial Leadership

Tesla's stock has dropped significantly as January sales fall sharply due to competition and political controversies surrounding CEO Elon Musk.

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  1. Tesla's market cap sinks below $1 trillion as stock slumps more than 8%

    The latest slide followed a report from Reuters on Monday that Tesla's long-awaited upgrade to its partially automated driving systems left owners disappointed.

    Tesla's market cap sinks below $1 trillion as stock slumps more than 8%

    CNBCCNBC·2M
    Reliable
    This source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.
    ·
    Center
    This outlet is balanced or reflects centrist views.
  3. Tesla shares slump after European sales fall

    Tesla has been facing stiff competition in the European market from Chinese and other manufacturers.

    Tesla shares slump after European sales fall

    BBC NewsBBC News·2M
    Reliable
    This source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.
    ·
    Center
    This outlet is balanced or reflects centrist views.
  1. CNBC
  2. NBC News
  3. BBC News
Updated: Feb 25th, 2025, 8:37 PM ET

Summary

A summary of the key points of this story verified across multiple sources.

Tesla's shares have seen a significant decline, dropping more than 25% as European sales plummeted 45% in January. The company's market valuation fell below $1 trillion, partially attributed to fierce competition from Chinese automakers like BYD and growing consumer discontent with CEO Elon Musk's political engagements. Analysts suggest that the fall may also reflect a broader concern over Musk’s political ties and their impact on Tesla's image in Europe, compounded by underwhelming vehicle software updates and management guidance on future deliveries.

Perspectives

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  • Tesla shares have plummeted over 9%, reaching a valuation below $1 trillion largely due to intense competition from other EV makers, especially in Europe and China.

  • Elon Musk's controversial political engagements and criticisms from buyers seem to be negatively impacting Tesla's sales and brand image.

  • Tesla's recent struggles are compounded by market concerns regarding interest rates and the potential impact of Trump's tariffs on the EV market.

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Tesla Shares Plunge Over 25% Amid Slumping Sales and Controversial Leadership - Pano News