Tesla's Market Cap Plummets Below $1 Trillion Amidst European Sales Slump
Tesla’s stock took another brutal hit yesterday, dropping over $27 per share, an 8.4% decline, closing at $302.80 after hitting an intraday low of $297.25. This sharp decline has erased its trillion-dollar valuation, bringing its market cap down to $974 billion—a stark contrast to its all-time high of $1.24 trillion, achieved on November 4, 2021.
This latest plunge is yet another confirmation of what I warned about in yesterday’s article, "Tesla’s Long Road Down: A Company That Lost Its Way." The writing has been on the wall for some time now, and yesterday’s price action is just the market catching up to reality.
The Decline Continues
Several factors contributed to Tesla’s latest drop:
Collapsing European Sales – Tesla’s January sales in Europe plummeted 45%, selling just 10,000 vehicles compared to over 18,000 in the same period last year. This is particularly damning considering European EV sales as a whole grew 37.3% in the same period. In short, people are still buying EVs—just not Teslas.
Political and Public Backlash – Elon Musk’s increasing alignment with President Trump and his involvement in the Department of Government Efficiency (DOGE) has fueled protests and backlash, particularly in Europe, where Tesla’s brand is suffering from Musk’s politics. Some analysts estimate that 15% of Tesla’s European market loss is directly tied to consumer rejection of Musk’s personal and political antics.
Competition Closing In – Chinese automaker BYD and other local competitors are eating away at Tesla’s market share, with many offering cheaper and more attractive alternatives to Tesla’s aging lineup.
Underwhelming Technology – Tesla’s latest so-called “Full Self-Driving” update in China landed with a thud. The long-hyped upgrade failed to impress consumers, making it clear that Tesla has overpromised and underdelivered yet again.
Where Does Tesla Go From Here?
As I’ve said before—Tesla is a sell, and the smart money got out long ago. Yesterday’s tumble is not the bottom. This stock still has a long way to fall before it finds any real support.
I stand by my earlier prediction: Tesla is heading for the $100-$150 range. It won’t happen overnight, but the trend is set, and momentum is working against Tesla. The bulls are out of excuses, and the market is waking up to the reality that Tesla’s best days are behind it.
Final Thought
There’s a difference between being a visionary leader and being a liability to your own company. Musk has crossed that line, and Tesla is paying the price. Investors should ask themselves whether they’re holding Tesla out of hope or logic.
Bill White Says...
"Once a stock loses its story, the only thing left is math—and Tesla’s math isn’t looking good."