Tesla suffered a nearly $100 billion loss in market value in a single day during U.S. stock market trading, following a 45% drop in its European sales in January. This decline comes at a time when electric vehicle sales in Europe surged by 37% over the same period, highlighting that Tesla's struggles are specific to the company.

Tesla's market value fell below the $1 trillion mark for the first time since last November, dropping 8.4% to $302.80 per share. This decline is attributed to weak European sales and growing concerns over CEO Elon Musk’s political activities. Since its peak in December 2024, Tesla’s stock has lost approximately 37% of its value, equating to a market capitalization loss of nearly $570 billion.

Musk has faced widespread criticism for his support of former U.S. President Donald Trump. A hand gesture he made during Trump's inauguration ceremony sparked controversy, with some comparing it to a Nazi salute. Musk defended himself, stating that the gesture was spontaneous and carried no political meaning.

Despite these challenges, Tesla remains the world’s most valuable electric vehicle manufacturer, surpassing the combined market values of General Motors, Ford, Toyota, Hyundai, and BMW. However, Musk’s actions have raised investor concerns, particularly after he sold Tesla shares to finance his acquisition of Twitter, which contributed to a total market value loss of over $700 billion since last year.

In an effort to counter this downturn, Musk announced plans to introduce new, more affordable electric models in 2025 and 2026, along with fully autonomous vehicles that could revolutionize urban mobility.