Shares of electric vehicle maker Tesla fell more than 9% after sales in the EU and UK nearly halved in January, reports the BBC, writes UNN.
Details
The drop in Tesla's shares has led to the company's valuation falling below $1 trillion for the first time since November 2024.
Tesla is facing fierce competition in the European market from Chinese and other manufacturers.
In addition, Tesla owner Elon Musk is causing controversial political waves on both sides of the Atlantic, the analyst said.
The main factor in the sales decline in January was likely increased competition, said AJ Bell investment director Russ Mold.
According to Mold, the Chinese manufacturer BYD has achieved significant success, partly because it includes some features as standard that are optional extras from other manufacturers.
However, some car buyers may also take a "principled stance" on Musk's political involvement, he said.
Tesla loses European market after Musk's political statements - FT25.02.25, 12:04