Tesla Shares Tumble as China Sales Plummet 49% in February

Tesla Stock Tumbles 4% Following Disappointing China Sales Report

Tesla’s stock price fell 4% in early trading on Tuesday, dropping to $272.49 per share, following a disappointing sales update from China. The electric vehicle manufacturer’s shares have now declined 30% year-to-date in 2025, extending a broader downward trend for the company.

The latest decline comes after reports that sales of Tesla’s China-made electric vehicles (EVs) plummeted by over 49% in February compared to the same period last year. According to data released by the China Passenger Car Association, Tesla sold 30,688 China-made EVs last month, marking the lowest sales figure since August 2022.

This sharp decline in Chinese sales is part of a broader trend, with Tesla’s Chinese-made vehicle sales falling 28.7% annually in the first two months of 2025. The company manufactures its popular Model 3 and Model Y cars in China for both domestic and international markets.

The disappointing sales report from China is not the only factor affecting Tesla’s stock negatively in 2025. Recent data also indicates a significant sales drop in Europe, with January figures showing a 45% year-on-year decline. This contrasts with generally positive trends in the European EV market, where competitors have been gaining ground.

While the Lunar New Year holiday in China may have impacted February’s sales figures, the stark contrast with Tesla’s Chinese competitor BYD, which saw a 90.4% increase in sales last month, raises concerns about Tesla’s market position.

Analysts suggest that rising competition in the EV market and changing attitudes toward CEO Elon Musk may be contributing to Tesla’s sales challenges. As the EV landscape becomes increasingly competitive, Tesla’s ability to maintain its market share and growth trajectory is being closely watched by investors and industry observers alike.