Tesla Stock Declines as China Sales Plunge 49% and Competition Intensifies
Tesla faces mounting challenges with declining sales in key markets, growing competition in China, and CEO Elon Musk's controversial political role impacting brand perception.
- Tesla's February sales in China dropped 49% year-over-year to 30,688 vehicles, marking the company's lowest monthly total since August 2022.
- Global sales of China-made Tesla vehicles for the first two months of 2025 declined 28.7% compared to the same period last year, highlighting broader challenges.
- Local competitors like BYD, Li Auto, and Nio significantly outperformed Tesla in China's electric vehicle market, with BYD reporting a 164% year-over-year sales increase in February.
- Tesla's sales in Europe also slumped, with January sales falling 45% year-over-year and February registrations in France and Scandinavia dropping by up to 48%.
- Investors and analysts cite a combination of weak demand, delayed product launches, and concerns over Elon Musk's political involvement as factors contributing to Tesla's declining stock value, which is down over 30% year-to-date.
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