Tesla wrapped up its second-worst month in February, with shares tumbling nearly 28%, despite a last-minute rally that saw a 4% gain on the final day of trading. The electric vehicle giant’s stock closed at $293.05, marking a steep decline from its mid-December high of $479.86.
This downturn surpassed the general market, with the S&P 500 declining only 2% over the same timeframe. Tesla’s worst month prior was in December 2022, when it posted a 37% drop.
The downturn comes amid several setbacks, including disappointing sales figures in Europe. According to the European Automobile Manufacturers’ Association, only 9,945 Tesla vehicles were registered in January 2025, a sharp fall from 18,161 in the same month last year. Meanwhile, overall regional electric vehicle sales surged by 37.3%, suggesting that Tesla’s struggles were more about competition than market demand.
Compounding Tesla’s difficulties are controversies involving its CEO, Elon Musk. His political engagement, such as endorsing Germany’s far-right AfD party and a series of controversial public acts, has precipitated outrage across several markets. In the U.S., protests outside Tesla dealerships and attacks tied to Musk’s involvement with the Trump administration’s DOGE program have added to investor anxiety.
Against these headwinds, Tesla is hoping to ride out the situation on its first-quarter delivery report, launch of its revamped Model Y, and its highly anticipated budget EV. Analysts say that boosting delivery numbers would help the company regain its mojo, but continued controversies over Musk’s political views and strategic direction may continue to hang over investor confidence.
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