Tesla's Valuation Crashes Under $1 Trillion, Hurt by Slumping European Sales
Tesla's market cap has slipped below $1 trillion on Tuesday as shares tumbled overnight, closing at $302.80 and reducing the market cap to $948 billion. The drop comes on the back of a steep decline in European sales, with data from the European Automobile Manufacturers Association revealing that Tesla sold only 9,945 vehicles in Europe in January, a 45% drop from 18,161 units recorded last year. This decline marks a significant reversal for Tesla's growth strategy, which had been driven by strong demand for its electric vehicles.
- The sudden collapse of European sales suggests that consumer preferences are shifting rapidly, forcing traditional automakers and EV manufacturers to reevaluate their strategies and investments in the region.
- How will Tesla adapt its product lineup and marketing efforts to respond to these changes and regain traction in the competitive European market?