Tesla’s stock plunged over 3% after a sharp 59% drop in German sales last month.
On Wednesday, Tesla shares fell 3.58% to $378.17 on the New York Stock Exchange, bringing its market capitalization down to $1.216 trillion.
According to the German Federal Motor Transport Authority, Tesla sold just 1,277 electric vehicles in January, a steep 59% year-over-year decline and the lowest monthly sales figure since July 2021.
Tesla also saw sales decline in France and the UK last month, signaling a broader downturn across Europe’s three largest electric vehicle markets.
These trends suggest that Tesla CEO Elon Musk’s political activities negatively affect the company’s business in key markets. Since stepping into politics, Musk has sparked controversy by commenting on European affairs.
Bloomberg analysts link Tesla’s sharp sales drop to Musk’s worsening public image in Europe.
The “Musk risk” factor now appears to be in full effect.