February 26, 2025 – Tesla shares tumbled 8.39% by the close of the US stock market, erasing over 280billionfromitsmarketcapitalizationandpushingitbelowthe1 trillion mark. The electric vehicle giant’s latest stock price settled at 302.8,markingasignificant38488.
This decline has resulted in Tesla being ousted from the exclusive club of seven US tech companies, including NVIDIA, Apple, Microsoft, Alphabet, Amazon, Meta, and previously, Tesla, all boasting market caps exceeding $1 trillion. Tesla now finds itself trailing its peers, reflecting a widening gap in valuation.
According to reports, Tesla’s European sales have suffered a drastic 45% year-on-year decline, contrasting sharply with the overall 37% growth of the electric vehicle market in the same period. This sluggish performance in a key market is a significant factor contributing to the company’s stock price decline.
Furthermore, Tesla’s Full Self-Driving (FSD) technology has not met expectations in China, where local automakers are rapidly catching up in the field of intelligent driving. The high price point of Tesla’s FSD is now seen as a disadvantage in terms of cost-effectiveness, putting the company at a competitive disadvantage against local brands like BYD and Xiaomi. This shifting market landscape poses a significant challenge for Tesla, which has long been a leader in the electric vehicle industry.
