Elon Musk's electric vehicles (EVs) company, Tesla, witnessed its shares slump sharply after European and UK sales fell by almost half in the first month of the year 2025.
According to BBC, Tesla's stock price fell badly by more than 9% in January 2025 after a rapid drop in EU and UK sales, which has decreased the total value of the company below $1 trillion for the first time since November 2024.
Tesla has been flourishing since Donald Trump won the presidential elections, but the EU January sales went against the trend. The sales of the company dropped by more than 45% in the EU, EFTA, and the UK, and by over 50% in the EU alone.
Moreover, the CEO of the electric car charger company Zaptec, Peter Bardenfleth-Hansen, believes, “There's no doubt his flirting with the right in politics, running around on TV with a chainsaw, is not exactly helping his image.”
“He may be getting a bigger fanbase within a specific type of clientele, but they're not the ones that are buying the Teslas. They're not the ones putting money into his company. So he has a problem," he added.
Meanwhile, analysts suggested that besides Musk’s controversial political role, one of the reasons behind the drop in sales is the increasing competition in the European market from Chinese and other manufacturers.
