The U.S. stock market suffered, with concerns over an economic slowdown pushing the Nasdaq down more than 1% and all major indices declining except the Dow.
This downturn rippled the American electric vehicle sector, leading to sharp losses.
On Tuesday, Tesla tumbled 8.39% on the New York Stock Exchange, while Rivian dropped 4.26%, Lucid fell 6.12%, and Nikola plunged 28.74%.
Tesla’s stock fell to $302.80, bringing its market capitalization below the trillion-dollar mark to $973.9 billion.
The company also reported a steep 45% year-over-year decline in European sales. According to the European Automobile Manufacturers Association (ACEA), Tesla registered only 9,945 vehicles in Europe in January, a stark drop from the previous year.
This decline contrasts with the broader market, where overall European electric vehicle sales surged by 37.3%, underscoring Tesla’s struggles.
Analysts attribute the slump to rising anti-Musk sentiment in the region, fueled by CEO Elon Musk’s controversial involvement in European politics. This has reportedly led some European consumers to boycott Tesla vehicles.
Tesla’s latest 8% drop extends a troubling trend, with the stock down 14.49% over the past five trading days and 25.53% over the past month.
As its market cap dipped below $1 trillion, Tesla fell to eighth place among U.S. companies by market value, with Broadcom ($949.3 billion) close behind in ninth.
The broader electric vehicle sector also suffered. Rivian’s stock dropped 4.26% to $11.45, while Lucid slid 6.12% to $2.61.
Nikola recently filed for bankruptcy protection, and its stock plummeted 28.74%, closing at just $0.18 per share.
This followed a 32.42% drop the previous day, bringing its total decline over the past five sessions to 76%.