Tesla shares a decline after the fall of European sales

The shares of the electric car manufacturer Tesla dropped more than 9%after EU and the United Kingdom sales fell almost half in January.

The decline in Tesla’s shares returned the company’s evaluation under 1 TTRN for the first time since November 2024.

Tesla is facing firm competition in the European market by Chinese and other manufacturers.

In addition, Tesla owner Elon Musk makes controversial political waves on both sides of the Atlantic, an analyst said.

Tesla sales in January dug out European trends in the sale of electric cars that increased by more than one -third during the month, According to the commercial authority ACEAS

Instead, Tesla sales in the EU, EFTA and the United Kingdom fell more than 45% and over 50% in the EU alone.

This comes after Tesla sales fell last year for the first time in more than a decade As the demand broke up and the rivals acquired a paceS

The main factor in the decline in sales in January is likely to be an increase in competition, said AJ Bell Investment Russ Mold director.

The Chinese manufacturer BYD has achieved big steps, partly, because it includes some features that cost further from other manufacturers, Mord said.

However, some car buyers may also occupy the “principle” position of Musk’s political interventions, he said.

Musk has made waves in the United States with its participation in reducing US development and efforts to dramatically reduce the US federal funding.

In the UK, he supports prison with far-right activist Stephen Jacques-Lenon, also known as Tommy Robinson, and has repeatedly criticized Prime Minister Sir Kir Starmer.

Musk also supports AFD’s right -wing right party in Germany and congratulated its leader after a party’s record result in second place in the election.

Asked if the reason for the decrease in the price of Tesla’s shares is that Musk is too toxic, former senior director of the car manufacturer, the Middle East and Asia said it was “definitely one of the reasons for the decline” ” , but added that there are, “cumulative number of things that accumulate domino effect”.

“There is no doubt that his flirtation with politics right, running on television with a cutter does not help his image exactly,” Peter Bardsta-Hansen told the BBC Today program.

“He can get a bigger fanbase within a specific clientele, but they are not the ones who buy Teslas. They don’t invest money in his company. So he has a problem.”

Tesla’s shares received a great impetus after the US election because of Musk’s proximity to Donald Trump – Musk has identified as the “first friend” of the US president.

Investors thought it would have a good end for his business.

However, Trump is not a supporter of electric vehicles and said he would cancel his efforts to increase their property.

“How someone thought it would be good for Tesla, I don’t know,” Mord said.

There is also a common market fork on the path of interest reduction and concerns about Trump’s tariff plans that could contribute to the fall, he added.