Tesla market cap plunges below $1tn

The company Tesla has encountered serious issues in the European market, resulting in a sharp decline in its market capitalisation. On Tuesday, the automaker's shares fell by 6.2%, pushing the company's value below $1tn.

Why did the shares fall?

The plunge in Tesla shares was the result of a prolonged slump in sales of electric vehicles in Europe. According to data from the European Association of Automobile Manufacturers, in January 2025, Tesla registered only 9,945 new cars, which is 45% less than in the same period of 2024 (18,161 vehicles).

Four consecutive days of decline

Shares of Elon Musk's company have continued to fall for four trading sessions in a row. The cumulative drop over this period amounted to 14%, and on Tuesday, the value of one Tesla share reached $310.01.