Tesla Stock Falls Amidst Declining Sales and Market Concerns
Tesla (TSLA) shares experienced a significant decline last week, losing over 10% in value. This downturn was attributed to a report indicating a slump in China deliveries, causing a 3.3% drop on the final trading day.
According to data released by the China Passenger Car Association, Tesla's sales in China declined by 11.5% year-over-year in January. Comparatively, Chinese competitor BYD saw a surge in sales of 47%. The report also revealed a 32.6% decrease in deliveries of Model 3 and Model Y vehicles made in China from December.
Tesla has implemented a 0% interest plan to boost sales in January. Further, the company has reduced vehicle prices in China and other markets. These measures aim to address declining sales in Germany and other European markets, raising concerns among investors about the impact of CEO Elon Musk's political involvement on consumer sentiment.
Tesla stock has been negatively affected by the recent suspension of federal funding for electric vehicle charger buildouts by the Department of Transportation. This move has led to a decline in shares of charging station makers ChargePoint (CHPT), Blink (BLNK), and EVgo (EVGO). Tesla has reportedly received approximately $31 million in funding through this program, highlighting the importance of charging infrastructure for the widespread adoption of EVs.