Tesla’s stock price fell over 8% on Tuesday as reports emerged that sales for the company across Europe dropped by around 45% in January. The decline comes despite rival electric-vehicle companies seeing increased demand, and has led to a significant decrease in Elon Musk’s net worth, now at $365 billion.
The drop in Tesla’s stock price was attributed to its struggles with European sales, which were reportedly affected by Musk’s increasing involvement in politics both in the US and Europe. The company has seen its lowest monthly total of new cars registered in Germany since July 2021 and France since August 2022.
An analyst note from Wedbush warned that Musk’s role in the administration of President Trump could be impacting Tesla shares, citing concerns over his dedication to other projects, such as the DOGE initiative. However, experts consider this a “containable brand issue” for Tesla.
Musk has taken on an increased role in Trump’s administration as the unofficial leader of the Department of Government Efficiency, which aims to slash government spending and waste. His team’s actions have been controversial, with some agency directors advising employees not to comply with certain requests.
As technology stocks fell broadly on Tuesday, Tesla’s market capitalization dropped to $972.98 billion, its lowest price in over a month.
Source: https://www.forbes.com/sites/mollybohannon/2025/02/25/tesla-stock-drops-8-as-european-sales-fall-elon-musks-net-worth-goes-down-15-billion/?ctpv=xlrecirc