The EV maker’s sales fell 45 percent amid CEO Elon Musk’s ongoing involvement in political affairs in the U.S. and abroad.

Tesla's stock tumbled 8% on Tuesday, pushing its market value below $1 trillion for the first time since November after data showed the electric car maker's sales slumped in Europe in January.

Shares in electric car maker Tesla have slumped more than 9% after EU and UK sales fell by almost half in January. The drop in Tesla shares took the company's valuation back below $1trn for the first time since November 2024. Tesla has been facing stiff competition in the European market from Chinese and other manufacturers.

Tesla stock rose on the last day of February, but it wasn’t enough to stem losses of nearly 30% for the month.

Tesla stock is on course for its second-worst month ever. Investors are looking for things that can turn the tide and looking for leadership from CEO Elon Musk. Shares of the electric vehicle maker were trying to snap a six-day losing streak,

Tesla (TSLA) stock’s 4% rally today today didn’t prevent Elon Musk’s electric vehicle-maker from logging its worst month ever, as the post-election rally disappears and the automakers’s market value holds below $1 trillion.