Catenaa, Wednesday, February 26, 2025- Tesla lost its $1 trillion market cap on Tuesday, as news of its vehicle sales falling 45% in January pushed its stock prices down 8%.
European Automobile Manufacturers’ Association said Tesla sold 9,945 vehicles in Europe in January, a 45% fall from the same period one year ago, as Tesla’s share of new car registrations in the region dropped from 1.8% to 1%.
The news sent shares in Tesla by over 9.22% by Tuesday afternoon, with the stock trading at around $300 as of 3:12 p.m. ET. The stock pared losses to end about 8% lower at $302.80.
The move dragged Tesla’s market cap to $974 billion, putting it below the $1 trillion milestone it had been cruising above since November.
Since mid-December, Tesla’s net worth has declined by more than $ 100 billion, or approximately 25%.
Tesla’s sales performance was a dark spot in an otherwise bright EV market in Europe last month. Overall, new electric car sales jumped by 37.3% across the continent, capturing a 15% auto market share in European Union countries.
Some reports have suggested European buyers are revolting against Musk’s active role in the Trump administration, which is effectively resetting longstanding European relations.
Investors may also simply be locking in the extraordinary gains of the past year or so: Even with the recent drop-off, the stock is still up 52% over the past 12 months.
