Tesla’s shares fell by over 9% after sales dropped sharply in January. The company’s value fell below $1 trillion for the first time since November 2024.

Tesla struggled in the European market. EU, EFTA, and UK sales fell by more than 45%. In the EU alone, sales dropped over 50%. Meanwhile, electric car sales in Europe grew by more than a third.

Competition is a big reason for Tesla’s struggles. Chinese carmaker BYD is growing fast. BYD includes features as a standard that Tesla charges extra for. This makes BYD more appealing to buyers.

Elon Musk’s political actions may also hurt Tesla. Musk has supported far-right figures in the UK and Germany. He also criticized UK Prime Minister Sir Keir Starmer. In the US, he supported big cuts to development funds. Some buyers might avoid Tesla because of this.

BBC Reports Says: A former Tesla director said Musk’s actions are affecting sales. He said Musk’s behavior hurts Tesla’s image. People who like Musk’s politics are not buying Teslas.

Investors had hoped Musk’s friendship with Donald Trump would help Tesla. But Trump dislikes electric cars and plans to cut support for EVs. This makes investors worried about Tesla’s future.

Other factors add to Tesla’s troubles. Investors are nervous about interest rates and possible tariffs. These issues accumulate, hurting Tesla’s stock and sales.

Tesla faces tough challenges ahead. It needs to win back customers and ease investor concerns. Otherwise, the company may continue to struggle in the global market.

Stock Futures Up Waiting for Nvidia’s Big Report

Stock futures went up early Wednesday after four days of losses for the S&P 500. Investors are waiting for Nvidia’s earnings report.

Dow Jones futures rose 54 points, or 0.12%. Nasdaq-100 futures gained 0.68%. S&P 500 futures climbed 0.38%.

Stocks fell on Tuesday. The S&P 500 dropped 0.5%. The Nasdaq Composite fell nearly 1.4%. The Dow Jones, however, rose about 0.4%.

A weak consumer confidence report hurt stocks. The report added to worries about the economy. Disappointing retail sales and low consumer sentiment made investors nervous. These concerns dragged major indexes down.

Nvidia’s Earnings Report Could Shake the Market

Nvidia will report its fourth-quarter earnings after the market closes on Wednesday. Investors believe this report could impact the market.

The earnings report comes at a crucial time for Nvidia. A new competitor, DeepSeek, raised doubts about the AI market’s future. Nvidia stock has already dropped more than 5% in 2025.

According to CNBC News: Finance professor Aswath Damodaran shared his view on CNBC’s “Closing Bell.” He said Nvidia might beat analyst expectations. But he thinks the market could still feel disappointed. He believes investors set higher expectations than analysts.

Other important earnings reports will also come out on Wednesday. Companies like Lowe’s, TJX, and Salesforce will release their results.

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