Tesla’s Stock Loses Momentum as Sales Dwindle in Key Markets

Tesla, the electric vehicle (EV) giant led by CEO Elon Musk, is experiencing a significant downturn in its stock performance, which has been exacerbated by dwindling sales figures in China and Europe. Following a period known for its “Trump bump,” where investors had high hopes for the company under former President Donald Trump’s administration, recent data shows that Tesla’s stock has fallen below pre-election levels.

A Dismal Month for Sales

Latest figures from the China Passenger Car Association indicate a stark decline in Tesla’s sales in the world’s largest EV market. In February, Tesla’s sales plummeted by **51.5%**, selling only **30,688 EVs** compared to **63,238** units sold in January. This alarming trend follows a January sales decrease of **11%**. Meanwhile, Tesla also faced a **76% decline** in sales registrations in Germany, Europe’s largest economy, in February alone.

Remarkably, while Tesla struggled, its main competitor, BYD Co. Ltd., saw its sales rise by **7.3%**, reaching **318,233 units**. The disparity highlights a growing concern among investors regarding Tesla’s ability to maintain its market share amidst increasing competition and political fallout.

The ‘Trump Bump’ Has Disappeared

Wall Street initially believed that Tesla investors would thrive in a Trump presidency due to Musk’s financial support and significant role in the administration. However, that optimism seems misplaced as ongoing trade tensions and divisive politics have begun to take a toll. With the recent selloff, Tesla’s stock (TSLA) closed down **15%** on Monday, marking its lowest point since **October 23, 2024**, with a closing price of **$213.65**. This drop also represented Tesla’s worst single-day share price decline since **September 8, 2020**.

Financial Impacts on Investors and Elon Musk

The fallout from the recent stock price decline has been substantial. From a peak close of **$251.44** on November 5, 2020, Tesla’s stock skyrocketed to a record high of **$479.86** by December 17, allowing Musk to accumulate significant wealth during that brief window. However, the company’s recent struggles have erased about **$55.55 billion** from Tesla’s overall market capitalization since Trump’s election victory. Musk himself has seen a staggering decline in his fortunes, losing approximately **$7.09 billion** as a result of the stock’s downward trajectory.

Analyst Adjustments: A Bleaker Forecast

Adding to the woes, UBS analyst Joseph Spak has revised his price target for Tesla’s stock from **$259** to **$225**, reflecting a more pessimistic outlook. He also downgraded his delivery expectations for the upcoming first quarter of 2021, now predicting only **367,000 EVs** to be delivered. This represents a **5%** year-on-year decline and a notable **26%** drop from the previous quarter’s deliveries, diverging from the FactSet consensus of **435,000 EVs**.

Spak acknowledged that while Tesla’s long-term prospects are focused on artificial intelligence advancements—such as robo-taxis and humanoid robots—these developments are seen as longer-term investments and may not support the stock’s currently inflated valuation.

Moving Forward: Challenges Ahead for Tesla

In the short term, Tesla faces significant hurdles as it navigates through declining sales figures amid increasing competition and expansive trade conflicts. Investors are watching closely to see whether the company can stabilize its market position, address the impact of political tensions, and revert the recent negative trends in its stock performance. With the emphasis on innovation and long-term strategic goals, it remains uncertain how quickly Tesla can regain its footing in a rapidly evolving industry.

The upcoming quarters will be crucial for both Tesla’s operational and financial health, and whether it can weather this storm may redefine how investors perceive the electric vehicle manufacturing sector as a whole.

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Tesla Stock Plummets as Sales Decline Significantly in Key Markets