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Feb 26 - Tesla Inc. (TSLA, Financial) saw its market cap slip 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. Data from the European Automobile Manufacturers Association revealed that the Texas-based EV maker sold only 9,945 vehicles in Europe in January, a 45% drop from 18,161 units recorded last year, the release said. In contrast, overall battery-electric vehicle sales in the region climbed 34% to 124,341 units, capturing about a 15% market share.
Tesla's stock has shed roughly 25% of its value year-to-date despite a gain of more than 51% over the past year, the release said. Investor unease has also grown over CEO Elon Musk's political alliances and ties with President Donald Trump, fueling additional concerns about the company's future prospects.
The decline in European demand underscores challenges for Tesla in a fiercely competitive global market, raising questions about its growth strategy as shifting consumer dynamics persist.
This article first appeared on GuruFocus.