Tesla Stock Plunges 8% Amid European Sales Slump, Musk’s Net Worth Drops $15 Billion
Tesla shares took a sharp hit on Tuesday, plunging more than 8% following reports of a 45% decline in European sales over the past month. This drop wiped out nearly $15 billion from Elon Musk’s net worth, bringing it down to $365.3 billion—a staggering $100 billion loss since its peak in December.
2/25/2025
Key Figures
Tesla’s stock price: $302.6 as of 1:20 p.m. EST, down 8.4% from its opening price.
Market capitalization: $972.98 billion, dipping below $1 trillion for the first time since November.
Musk’s net worth: Down 4% on Tuesday alone.
Why Is Tesla Struggling in Europe?
According to a Bloomberg report, Tesla’s European sales have taken a nosedive, particularly in Germany and France, where January registrations hit their lowest levels in years. The decline coincides with Musk’s increasing involvement in politics, both in the U.S. as a key adviser to President Donald Trump and in Europe, where he has openly supported far-right political parties like Germany’s Alternative for Germany (AfD).
Market Reactions and Analyst Warnings
A Wedbush analyst note led by Daniel Ives highlighted that Musk’s deepening role in the Trump administration has weighed heavily on Tesla’s stock. Investors worry that his commitment to the Department of Government Efficiency (DOGE)—a new initiative aimed at cutting government spending—distracts him from Tesla’s crucial business operations. While the note suggested that Tesla’s brand reputation could take a hit, it downplayed the long-term damage, calling the issue a "containable brand problem" rather than a "major cause for concern."
The Bigger Picture
Musk’s political involvement, coupled with Tesla’s struggles in key European markets, has put significant pressure on the company’s stock. Tesla has already lost 25% of its value since December 31, and if its European sales continue to decline, the road ahead could be even bumpier.
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