Tesla's Market Value Drops Below $1 Trillion Amid Sales Slump in Europe on Tuesday

Tesla's stock fell 8% on Tuesday, causing its market value to dip below $1 trillion for the first time since November. This decline followed a report by the European Automobile Manufacturers Association indicating a 45% drop in Tesla's European sales in January. This contrasts with a 37% increase in overall EV sales in Europe. The decrease in sales highlights challenges for Tesla, putting pressure on CEO Elon Musk to introduce more affordable models and autonomous vehicles. Tesla shares fell to $305, resulting in a market capitalization of $981 billion. Investors are also concerned about Musk's involvement in government downsizing and potential over-investment in AI. Despite the recent drop, Tesla shares are up 51% over the past year but down 24% year-to-date.