Key points
- Tesla sold less than 10,000 units in Europe last month
- Tesla’s share price surged in the wake of the 2024 US presidential election
- The auto giant also faces stiff competition from automakers like BYD in China
WASHINGTON: Shares of the US electric vehicle pioneer Tesla plunged Tuesday, leaving its market value below $1 trillion as investors digested disappointing European sales.
According to AFP, the auto giant sold less than 10,000 units in Europe last month, down around 45 per cent from a year earlier.
Bloomberg reported that the Elon Musk-led company’s stock closed down 8.4 per cent at $302.80, at a market cap of $974 billion. The shares have now cumulatively fallen 16% in four straight trading sessions of losses, wiping out $186 billion in market value over that time, the newspaper added.
Musk has taken on a high-profile advisory role in US President Donald Trump’s administration, charged with slashing government spending.
Challenges in Europe
“Tesla is clearly facing challenges in Europe and the Musk brand issues are adding to the headwinds,” AFP cited Wedbush Securities analyst Dan Ives as saying.
Tesla’s share price surged in the wake of the 2024 US presidential election, with investors betting that Musk’s proximity to Trump could help his companies succeed, AFP reported.
The poor sales figures in Europe appear to have punctured that optimism — at least for now — and raised concerns that what may be popular in the United States could in fact be detrimental to the company’s success elsewhere.
READ ALSO: Tesla Rolls Out Advanced Self-Driving Functions in China
Alongside its European struggles, Tesla also faces stiff competition from automakers like BYD in China — a key market for electric vehicles.
Chinese automaker BYD — Tesla’s biggest rival in the country — that it would introduce advanced self-driving technology for nearly all its cars.
Earlier this week, the company announced it would start offering advanced self-driving functions for its cars in China, shortly after BYD said it would introduce self-driving technology for nearly all its vehicles.
AFP reported that China is a major market for Tesla, where the company has two factories and is trying to compete with fast-growing domestic manufacturers. With input from AFP.
