Flagging global sales and Elon Musk\u2019s increasingly outspoken political activities are combining to rock the value of Tesla.<\/p>\n
Shares in the once-trillion-dollar company saw their worst day in five years this week. Year to date, Tesla\u2019s stock has plunged 41% \u2014 though it is still up by about 36% over the past 12 months.<\/p>\n
On Monday, the stock was down another 5%. <\/p>\n
For Musk, Tesla\u2019s shares remain his primary source of paper wealth, though he has also turned his stake in SpaceX into a personal lending tool. But it was proceeds from selling Tesla shares that helped Musk complete his acquisition of Twitter, now known as X.<\/p>\n
Musk\u2019s wealth also allowed him to help vault Donald Trump into a second presidential term. Even as Musk\u2019s net worth has diminished as a result of Tesla\u2019s recent share-price declines, data suggests he is in no danger of losing his title as the world\u2019s wealthiest person.<\/p>\n
Musk has said on X that he is not concerned about Tesla\u2019s recent drop in value. Still, evidence suggests the company is entering a period of transition.<\/p>\n
A spokesperson for Tesla did not respond to a request for comment.<\/p>\n
Musk\u2019s wealth has propelled him to a global presence that lacks precedent \u2014 and has polarized world opinion about the tech entrepreneur in the process. Any weakening of his financial position, therefore, could undercut his influence in the political and tech spaces where he now commands outsize attention.According to Bank of America, Tesla\u2019s European sales plummeted by about 50% in January compared with the same month a year prior.<\/p>\n
Some say this is attributable to a growing distaste for Musk, who has begun dabbling in the continent\u2019s politics in the wake of his successful support of Trump\u2019s candidacy last year.<\/p>\n
Others note Tesla\u2019s European market is facing increased competition from the Chinese electric-vehicle maker BYD, which has telegraphed ambitious plans for expansion on the continent. <\/p>\n
A more decisive blow to Tesla\u2019s near-term fortunes may be emanating from China itself. There, Tesla\u2019s shipments plunged 49% in February from a year earlier, to just 30,688 vehicles, according to official data cited by Bloomberg News. That\u2019s the lowest monthly figure registered since July 2022 \u2014 amid the throes of Covid-19 \u2014 when it shipped just 28,217 EVs, Bloomberg said.<\/p>\n<\/p>\n
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