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The actions of the Tesla electric car manufacturer have collapsed more than 9% after EU sales and the United Kingdom fell almost half in January.
The fall in the shares of Tesla recovered the valuation of the company below $ 1TRN for the first time since November 2024.
Tesla has faced a hard competition in the European market of Chinese manufacturers and other manufacturers.
In addition, the owner of Tesla, Elon Musk, has been making controversial political waves on both sides of the Atlantic, an analyst said.
Tesla sales in January wrote European trends for the sale of electric cars, which grew in more than a third in the month, According to the ACEA commercial body.
Instead, Tesla’s sales throughout the EU, EFS and the United Kingdom fell more that 45%, and more than 50% only in the EU.
It occurs after Tesla’s sales fell last year for the first time in more than a decade As the demand hesitated and the rivals obtained rhythm.
The main factor in the January sales fall was probably to increase competition, said AJ Bell Investment Director Russ Mold.
The Chinese manufacturer Byd has been making great steps, partly because it includes as standard some features that cost more than other manufacturers, Mold said.
However, some cars buyers may also be taking a “position of principles” in Musk’s political interventions, he said.
Musk has made waves in the United States with its participation in cutting development funds from the United States and efforts to drastically reduce federal financing of the United States.
In the United Kingdom, it supports the extreme right-right activist Stephen Yaxley-Lennon, also known as Tommy Robinson, and repeatedly criticized Prime Minister Sir Keir Starmer.
Musk also supports the AFD party of the extreme right in Germany, and congratulated its leader after the second record of the party results in elections.
There are other political factors that may be cushioning Tesla’s perspectives, Mold said.
Tesla’s actions obtained a great impulse after the US elections due to Musk’s closeness with Donald Trump: Musk has described himself as “first friend” for the president of the United States.
Investors thought this would resist their businesses in good place.
However, Trump is not a supporter of electric vehicles, and has said that he will cancel efforts to increase his property.
“How someone thought this was going to be good for Tesla, I don’t know,” Mold said.
There is also an insult in the market on the path of interest rate cuts and concerns about Trump’s rates plans that could be contributing to the fall, Mold added.
