Tesla Value Declines As European Sales Plummet – Report

Tesla shares have fallen 8 percent this week, and this coupled with worrying sales figures in the EU and UK, may prompt some shareholder concern at the EV giant.

Tesla’s share price fell 8 percent down to a low of $294, pushing the EV giant’s market cap below $1 trillion (its lowest valuation since November 2024).

But on Wednesday its share price bounced back a little and is currently trading around $298.82.

Tesla’s stock has plummeted 25 percent so far in 2025, and is down more than 35 percent from its record high in December.

European sales

There have been claims that Tesla is paying the price for Elon Musk’s enthusiastic backing of President Donald Trump, coupled with his role in the federal cost cutting by Doge, and his support for a far right leader in Germany.

Indeed, Elon Musk’s political rhetoric has triggered a number of protests at Tesla stores and service centres, and left wing activists even projected an image of Elon Musk’s infamous raised-arm salute and the word “Heil” onto the outside of his Tesla plant in Germany.

And now the Guardian, citing data from the European Automobile Manufacturers’ Association (ACEA), has reported that Tesla sold 9,945 vehicles in Europe in January, which is down a staggering 45 percent from last year’s 18,161.

Tesla’s share of the market also dropped to 1 percent from 1.8 percent, prompting additional concerns of a possible consumer backlash against Musk’s activities and his intervention in European politics.

Tough times

Indeed, the Guardian (citing Bloomberg calculations) noted that Tesla sold 1,277 new cars last month in Germany, its lowest monthly total since July 2021.

Tesla sales in France reportedly plummeted 63 percent, in its worst performance in the country since August 2022.

Tesla is facing (certainly in the UK) intense competition from Chinese EV makers, which could be taking away some of Tesla’s potential customer base.

This was evidenced when Tesla recently registered fewer vehicles in the UK than its Chinese electric car rival BYD for the first time.

Tesla’s slump in these three important markets came as the European market for new battery-electric cars grew by 34 percent to 124,341 units, capturing a 15 percent share of the total car market, according to figures from the ACEA.