United Kingdom: Shares in electric vehicle giant Tesla has tumbled more than 9 percent after sales in the European Union and the UK plummeted by nearly 50 percent in January. The decline caused Tesla’s market valuation to fall below the $1 trillion mark for the first time since November 2024.
Despite overall European electric car sales rising by more than a third in January, Tesla’s sales dropped sharply—falling over 45 percent across the EU, EFTA, and UK, and more than 50 percent in the EU alone, according to trade body Acea. This follows Tesla’s first annual sales decline in over a decade last year, as competition from rival automakers intensified.
Investment experts point to growing competition as a key factor in the slump. Chinese EV manufacturer BYD has been gaining ground, offering advanced features as standard, while Tesla charges extra for similar options.
Tesla owner Elon Musk’s political stances may also be impacting consumer sentiment, according to AJ Bell investment director Russ Mould. Some buyers could be ignoring the brand due to Musk’s controversial political interventions on both sides of the Atlantic.
Musk has sparked controversy in the US by advocating for deep cuts to development and federal funding. In Europe, he has voiced support for jailed far-right activist Tommy Robinson in the UK and Germany’s far-right AfD party, congratulating its leader after the party’s strong electoral performance.
Tesla’s stock surged following the U.S. election, with investors betting on Musk’s close ties to Donald Trump. However, Trump has publicly opposed electric vehicle initiatives and pledged to roll back policies aimed at increasing EV adoption.
Mould stated that, “How anybody thought this was going to be good for Tesla, I don’t know,” highlighting the potential policy risks. Further market uncertainty, including concerns over the timing of interest rate cuts and Trump’s proposed tariffs, is also weighing on investor confidence.
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