'Unprecedented Slide': Tesla Sales Plummet 45% In Europe As Musk's Net Worth Dives $5.2B In A Week

Elon Musk's net worth has taken a hit this year—down by about $52 billion—but he still tops the list as the world's richest person, with a current estimate of $336 billion, according to the Bloomberg Billionaires Index. Despite this headline-grabbing fall in personal wealth, the challenges facing Tesla are proving even more dramatic.

Riding Through Turbulence

Tesla's TSLA shares have experienced a sharp decline recently. Earlier this week, the stock dropped over 4% by market close, and has lost about a third since the start of the year. This downward trend has pushed the company's market capitalization below the $1 trillion mark for the first time since Nov.

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At the same time, Tesla's vehicle sales have experienced a significant setback. In Europe, where the overall electric vehicle market grew by 37% in January, Tesla's sales plunged by 45% during the same period.

According to National Public Radio, the slump in sales isn't just a reflection of softer consumer demand—it's also driven by intense competition from Chinese automakers and a slowdown in the U.S.

Much of the criticism these days centers on Musk's political activities. His close association with President Donald Trump and his leadership of the Department of Government Efficiency have stirred considerable controversy.

Reuters notes that such distractions could undermine Tesla's focus on its core business. While these political maneuvers have dampened investor sentiment, analyst Adam Jonas, reinstated Tesla as his firm’s “top pick” in U.S. autos on Sunday. According to Investor’s Business Daily, Jonas emphasized Tesla’s competitive advantage in embodied AI and maintained a price target of $430, with a bull case of $800.

This points to Tesla's ambitious plans in autonomous driving and robotics, suggesting that once these projects gain traction, the company could bounce back.

Back when investors were riding high on the expectation that Musk's ties to the Trump administration would bring deregulation-friendly policies, his net worth surged to a record $347.8 billion right after the election, Bloomberg reported.

But recent developments—ranging from contentious job cuts to provocative public statements—appear to be causing a shift in sentiment.

Even with the volatility, there are some stable numbers amid the chaos. Over the past week, Musk's net worth dropped by $5.2 billion yet still maintains a comfortable lead of roughly $110 billion over Meta META CEO Mark Zuckerberg, according to the Bloomberg Billionaires Index.

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