Tesla (TSLA) stock dipped below the $300 mark on Thursday falling 12 points in the day’s trade after shedding nearly 4%. Its performance has been lackluster in 2025 as it plummeted close to 26% year-to-date. The electric car maker is dwindling in the indices attracting bearish sentiments in the charts.
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Traders are fearful of taking an entry position in TSLA believing that the stock is yet to bottom out. The unending woes are putting the leading stock under pressure with downturns outnumbering upticks in 2025. so why is Tesla stock crashing in 2025? In this article, we will highlight the troubles going on with TSLA.
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Why Is Tesla Stock (TSLA) Crashing?
The latest data from Bloomberg shows that the sales of Tesla electric vehicles (EV) have experienced a sharp decline. The European Automobile Manufacturers Association (ACEA) revealed that the sales dip is eroding its market dominance in Europe. The EV maker has registered only 9,945 vehicle sales in January this year, down 18,161 since last year. The dwindling sales are affecting TSLA stock making it bleed in the indices.
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Also, Chinese automaker SAIC Motor saw a surge in sales with a 36.8% jump in registrations across Europe. The development has led to the tightening of the competitive landscape leaving Tesla far behind this year. If that wasn’t enough, Tesla car sales declined in China with an 11.5% drop year-over-year. It sold 71,447 cars in February 2024 but sold only 63,238 this year during the same month. This caused damage to Tesla stock as could go south further if the sales don’t recover.
“It is hard for Tesla to catch up with the smart-driving capabilities in Chinese cars, which even makes less sense given its high pricing,” said Lu Panpan, a Tesla car owner to Reuters. If Tesla fails to compete with its European and Chinese EV competitors, TSLA stock will only decline hereon.
