On Tuesday, Tesla’s stock plummeted over 4% after reports revealed its sales in China had halved, following a similar decline in Europe. This triggered a widespread selloff in U.S. electric vehicle stocks, with Rivian shares declining 2.17% to $11.26 and Lucid dropping 0.94% to $2.10.
Tesla’s stock price plunged to $272.04, reducing its market cap to $900.6 billion. Thus, it is now the eighth-largest U.S. company by market value.
According to the China Passenger Car Association (CAAM), Tesla sold approximately 30,000 vehicles in China last February, a 49% decline from the previous year and its lowest sales figure in two years.
This follows January’s sales collapse in Europe, which was sparked by a boycott movement against Tesla following CEO Elon Musk’s controversial involvement in European politics.
In China, intensifying competition is the primary factor behind the sharp sales decline.
Adding to Tesla’s woes, Bank of America (BoA) maintained its neutral rating but dramatically cut its price target from $490 to $380, citing the ongoing U.S.-China trade tensions as a significant challenge.
As a result, Tesla’s stock dropped 10.16% over the past five trading sessions and 30.64% in the last month. Notably, these declines have erased all gains made since Trump’s election.
