Overview

• Tesla's stock dropped over 8% on Tuesday, reducing its market value by $88 billion, and bringing it below $1 trillion for the first time since November 2024.
• Sales of Tesla vehicles have declined globally, with European sales in January falling by 45% compared to the same month last year, despite overall growth in the EV market.
• Analysts cite Tesla's aging vehicle lineup and increased competition from other automakers as major factors contributing to the sales slump.
• Elon Musk's political role as head of a U.S. government efficiency department and his close ties to President Donald Trump have sparked controversy, particularly in Europe, impacting Tesla's brand image and sales in the region.
• Investors are concerned that Musk's focus on other ventures, including SpaceX, xAI, and social media platform X, is detracting from his leadership at Tesla, with doubts growing about the company's ability to execute its ambitious AI and autonomous driving strategies.