Sales slump

Tesla company value back below one trillion dollars

Tesla's sales in Europe fell by 45 percent in January.(Bild: AFP/JOSH EDELSON)

The gains made by the shares of e-car manufacturer Tesla following the election of Donald Trump as US President are gone again for the time being. A slump in sales in Europe has caused the shares of Trump advisor and multi-billionaire Elon Musk to plummet.

The shares of the electric car pioneer lost 8.5 percent to 302.39 dollars and were the cheapest they have been since the beginning of November at midday on Wednesday (local time). As a result, the company's market value fell back below one trillion dollars.

Tesla's sales in Europe fell by 45 percent in January, the latest data from the European Automobile Manufacturers Association (ACEA) showed on Wednesday. Meanwhile, sales of all electric vehicles on the continent soared by 37 percent in the same month. In Austria, however, Tesla remained the most important brand for electric cars in January, ahead of VW, BMW, Renault and Audi.

Mustard on pizza
Following Donald Trump's victory in the US presidential election in early November, Tesla shares rose sharply. At the time, the prevailing expectation among investors was that Musk's close proximity to Trump would boost the success of his companies. In the meantime, however, the public controversies surrounding Musk and his role in the Trump administration have intensified considerably.

Analyst Dan Ives from Wedbush Securities told the AFP news agency on Monday that around ten to 15 percent of the headwinds for Tesla in Europe have to do with the rejection of Musk. His political views are not conducive to Tesla sales. "It's like putting mustard on a slice of pizza," said Ives.