Elon Musk Responds To Why Tesla Stock Is Going Down, Tesla Stock Crashed More Than 30%(MUST WATCH)

In February 2025, Tesla's stock experienced a significant decline of nearly 30%, marking one of its worst monthly performances on record. Several factors contributed to this downturn:

1. Declining Sales in Key Markets

China: Tesla's sales of China-made electric vehicles plummeted by 49.2% in February compared to the previous year, reaching their lowest point since August 2022. This sharp decline was particularly concerning given China's importance as a major market for Tesla.
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Europe: In January, Tesla's European sales dropped by approximately 45% year-over-year, contrasting with the overall growth in the European electric vehicle market. This suggests that Tesla is losing ground to competitors in the region.
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2. Intensifying Competition

Rival companies, especially China's BYD, have made significant gains. BYD reported a 90.4% increase in vehicle sales during the same period that Tesla's sales were declining, indicating a shift in consumer preference toward other electric vehicle manufacturers.
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3. External Economic Factors

The imposition of tariffs on goods from Canada and Mexico, along with retaliatory measures from Canada and China, has complicated Tesla's supply chain and profitability. These trade tensions have added to the financial pressures on the company.
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4. CEO Elon Musk's Public Statements

Elon Musk's bold prediction that Tesla's earnings could grow tenfold within the next five years was met with skepticism. While such statements have previously led to short-term volatility, the recent market reaction suggests growing investor concern over the feasibility of these ambitious targets.
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Collectively, these factors have eroded investor confidence, leading to a substantial drop in Tesla's stock value during February 2025.