SA-Born Elon Musk’s Tesla Loses $89 Billion Market Share Slump Amid Slowed European Sales

• Electric car manufacturer Tesla has seen its share price drop to below $1 trillion amid dwindling European sales
• The automaker sustained intense trading on Tuesday, 25 January 2025, after recording a 45% drop in sales in Europe
• Musk's open support for hard-right political parties in Germany has made him and his brand an unpopular choice

Tshepiso Mametela is a seasoned journalist at Briefly News. A Head of Current Affairs, Mametela reported live from the presidential inauguration of Cyril Ramaphosa and has written articles on politics, crime, courts, accidents and other topics, including sports, at The Herald and Opera News SA, among others.

AUSTIN, TEXAS — Tesla, the world's leading electric vehicle producer, got a zapping shake-up this week as its market share slumped below $1 trillion.

Disappointing European results left investors digesting less-than-bargained-for sales — fewer than 10,000 units in January — amid an aggressive leap into the political realm for chief executive Elon Musk.

Read also

Cabinet rejects Enoch Godongwana's revised budget, DA proposes alternative without tax increases

Tesla takes market share hit

This translated to a 45% drop from the sales recorded last year in the same period. By the end of Tuesday trading, the automotive giant's stock price had fallen 8.4%, to an unprecedented $302.80 per share.

The drop sliced $89 billion from its market value. This was contrary to after the 2024 US election, when the share price surged, increasing Musk's wealth.

Since then, against the backdrop of the poor European sales figures, investors' optimism that Musk's close affiliation with Trump could increase the success of all his companies – at least for now — seems to have punctured.

In his notable political pivot, Musk co-leads a newly established Department of Government Efficiency (DOGE) in US President Donald Trump’s administration.

The department is mandated to reduce wasteful government expenditure.

According to French international news agency AFP, Musk has openly aired his strong support for the hard-right Alternative for Germany party (AfD) after the recent federal election.

Read also

Naspers-owned Prosus buys Just Eat Takeaway.com for nearly R80 billion, eyes European dominance

The AfD is Eurosceptic, pro-Russian and opposes immigration into Germany, especially Muslim immigration. Just 12 years after its founding, it is now the second-largest political force in the country.

Musk's support has drawn criticism from some European politicians.

But, despite this support, including that of US Vice President JD Vance, the party's success has not translated into government participation.

Alongside its European wrangles, Tesla faces a stiff challenge from Chinese automakers, such as BYD Auto Co., Ltd, with its foothold in a key electric vehicles market.

The company announced it would start offering advanced self-driving functions for its cars in China after first sharing its plans to introduce self-driving technology for nearly all its vehicles.

In an X post, AFP reported that Tesla had also announced offering advanced self-driving functions for its cars in China, including autopilot on city streets.

Musk gives Optimus Bot 'a hand

Read also

Where Shauwn Mkhize got it wrong with Royal AM as SARS sets price tag for club

In a related story, Briefly News reported that Musk applauded one of his ground-breaking inventions for its outstanding human ability.

In October 2024, Musk unveiled Optimus, a faceless general purpose, bi-pedal bot known as an autonomous assistant and humanoid friend created by Tesla.

Source: Briefly News