Tesla Shares Slump After European Sales Fall
Shares in the US electric carmaker dropped after European sales halved in January. Shares in electric car maker Tesla have slumped more than 9% after EU and UK sales fell by almost half in January, taking the company's valuation back below $1trn for the first time since November 2024. Tesla has been facing stiff competition in the European market from Chinese and other manufacturers, with some analysts attributing the decline to Elon Musk's recent controversial political interventions.
- The current slump in Tesla shares may serve as a harbinger of broader challenges faced by the electric vehicle industry as global trade tensions and interest rate cuts continue to weigh on investor confidence.
- How will the continued dominance of Chinese EV manufacturers in Europe impact Tesla's long-term prospects for growth and market share?