Tesla plunges on stock market after spectacular fall in sales in Europe

Tesla lost $89 billion in value on the stock market on Tuesday, after announcing a 50% drop in its sales in Europe in January 2025. In Germany, sales fell by 60%, while in Spain and France the declines were  75% and 63% respectively.

This sluggishness is attributed both to increased competition and to the political stances of its CEO, Elon Musk, a supporter of US President Donald Trump, which have tarnished the brand’s image.

In Germany, Tesla now accounts for just 3.7% of the electric car market, compared with 10% on average in 2024. Criticism of Musk, particularly his support for the far right, has also had an impact on the perception of the brand in Sweden, where only 11% of consumers have a positive image of Tesla.

Tesla is also facing fierce competition from traditional manufacturers such as General Motors and Ford, as well as start-ups such as Rivian, backed by Volkswagen. The rise of Chinese electric vehicles, particularly those from BYD, subsidised by Beijing, is adding to this pressure. Tesla is also facing fierce competition from traditional manufacturers such as General Motors and Ford, as well as start-ups like Rivian, backed by Volkswagen. The rise of Chinese electric vehicles, particularly those from BYD, subsidised by Beijing, is adding to this pressure.

A situation that highlights the challenges Tesla faces in maintaining its dominant position in an increasingly competitive market.

source: Le point