There’s no way to ignore the fact that Tesla stock’s growth has stalled. The question is, can it regain its previous momentum?
As the 2024 U.S. presidential election approached in November 2024, (TSLA) stock enjoyed significant momentum, as CEO Elon Musk’s proximity to Trump sparked investor enthusiasm.
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Lately, however, while Musk has been seemingly preoccupied with his new responsibilities at the so-called Department of Government Efficiency (DOGE), shares have been steadily declining.
Tesla is far from the only big tech stock struggling as uncertainty among investors continues to rise. Its peers, such as Nvidia (NVDA) , Amazon (AMZN) , and Microsoft (MSFT) , have all been in the red for the past month and have not shown signs of a rebound.
However, the fact that the CEO of an industry-leading company seems to be busy with other things is raising speculation regarding Tesla’s future as multiple factors impede its growth.
Of course, no one is actually wondering where Musk is. A quick look at any news platform reveals that he’s been busy making changes to the U.S. Federal Government at the DOGE, which has also been his preferred topic to post about on social media lately.
However, since Musk began shifting his focus away from his companies, things have changed for Tesla and not for the better. The stock recently fell so far that it lost its trillion-dollar market capitalization, rendering it less valuable than both Broadcom (AVGO) and Taiwan Semiconductor Manufacturing (TSM) .
Related: Angry Tesla owners threaten to take action against Elon Musk
Part of this momentum is likely due to negative Tesla sentiment surrounding the company in a key international market. According to InsideEVs, while electric vehicle (EV) sales are rising across Europe, Tesla sales are declining.
“Tesla sales plummeted in the EU last month, falling by a whopping 45.2%. It sold just under 10,000 cars versus over 18,000 in January 2024, and its market share fell from 1.8% to 1% this year,” the outlet reports.
This seems to be due to anger towards Musk, who is accused of making an inappropriate gesture on stage during Trump’s inauguration.
Just how significant are Tesla’s problems in Europe, though? TheStreet spoke to multiple experts to find out if these negative impacts are likely to persist.
David Materazzi, founder and CEO of Galileo FX, shared context from Italy. “The very second Musk stepped into his new role, Tesla stepped down. People aren’t just selling their cars here… they’re making a statement. That’s a brand in free fall.”
