By Owen Tucker-Smith

Tesla shares declined to their lowest level since Election Day on Thursday, capping off the stock's worst six-day stretch since December 2022.

The selloff comes as some investors worry that Chief Executive Elon Musk is more focused on his role at the Department of Government Efficiency than on his electric-vehicle company.

Data published Tuesday showed that Tesla sales in Europe tumbled 45% in January. The weak sales report was likely due in part to a combination of the switchover to the new version of Tesla's Model Y vehicle, a New Year's hangover after an aggressive December sales push, and steep competition from other brands. But concerns in Europe over Musk's role in U.S. politics also contributed, according to Wedbush analyst Dan Ives.

The news on Tuesday sent the company's market capitalization below $1 trillion for the first time since mid-November.

"There's been major concerns around DOGE distractions from Musk and brand issues that have all boiled up," Ives said. "The Europe disaster number was the first data point that put credence behind the brand worries that Musk has created in Europe."

The stock is down more than 30% this month, on pace for its worst month since December 2022. Ives said he thinks between 70% and 80% of the current selloff is related to Musk's role at DOGE and concerns about brand deterioration.

"It feels like he's basically a White House official unofficially, and then runs Tesla in his free time," Ives said. "And perception is reality in a jittery market."

The company didn't immediately return a request for comment.

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February 27, 2025 16:52 ET (21:52 GMT)

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