Tesla stock drops 8%, erasing election rally gains

Tesla's stock has dropped over 8%, reaching its lowest level since November 2024. This decline has erased the 91% gains made after the 2024 election, driven by slowing sales in China and Europe, and concerns over CEO Elon Musk's political stance. Sales in China fell by 49%, and in Europe, they dropped by 26%. Additionally, UBS downgraded its delivery estimates for Tesla, increasing market anxiety. Broader market pressures, including declines in tech stocks and economic uncertainty, have also contributed to the stock's downturn. Despite the drop, Tesla's market value remains around $845 billion, still higher than most automakers. Analysts are divided on the company's future, with some optimistic about its AI prospects, while others warn of potential brand damage from Musk's political involvement.