{"id":67469,"date":"2026-02-02T17:52:42","date_gmt":"2026-02-02T17:52:42","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/why-is-tesla-stock-crashing-in-early-trading-on-monday\/"},"modified":"2026-02-02T17:52:42","modified_gmt":"2026-02-02T17:52:42","slug":"why-is-tesla-stock-crashing-in-early-trading-on-monday","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/why-is-tesla-stock-crashing-in-early-trading-on-monday\/","title":{"rendered":"Why is Tesla stock crashing in early trading on Monday?"},"content":{"rendered":"

(Originally posted on : Invezz )<\/b>
\n<\/p>\n

\n

Tesla stock (NASDAQ: TSLA) tumbled over 3.5% in the early trading on Monday as the electric carmaker confronts a convergence of structural headwinds.<\/p>\n

The Elon Musk-led company is going through multiple issues at once, like collapsing European sales momentum that has accelerated through January, a broad commodity-led market rout that pressured tech stocks at the open, and lingering investor skepticism.<\/p>\n

The sell-off reflects mounting doubts that Tesla\u2019s pivot away from cars can justify a $1.3 trillion valuation when the core business is visibly weakening.<\/p>\n

Tesla stock: What\u2019s driving the plunge today?<\/h2>\n


\n Copy link to section<\/span>
\n <\/a><\/p>\n

Tesla\u2019s European performance provides the most concrete bearer of bad news.<\/p>\n

The company\u2019s vehicle registrations in the region fell 88% year-on-year in January 2026, collapsing to just 83 units in Norway, a market historically loyal to Tesla.<\/p>\n

For all of 2025, European registrations declined 26.9% to 238,656 units<\/a>, and the first month of 2026 signals no recovery.<\/p>\n

Meanwhile, Chinese rival BYD logged 268.6% growth in Europe last year, registering 187,657 units and rapidly encroaching on Tesla\u2019s remaining market share.<\/p>\n

Industry analysts point to two drivers: product fatigue (the Model Y is four years old in its current form) and brand damage from Elon Musk\u2019s polarizing political rhetoric.<\/p>\n

The broader market context amplifies Tesla\u2019s pain.<\/p>\n

On Monday, precious metals collapsed, gold fell 6%, and silver tumbled 10%, as the CME Group raised margin requirements following Friday\u2019s historic rout.<\/p>\n

That cascade forced leveraged investors to liquidate across growth and tech names.<\/p>\n

What\u2019s rattling investors most is Tesla\u2019s capex bet<\/h2>\n


\n Copy link to section<\/span>
\n <\/a><\/p>\n

Beyond the macro crosswinds, Tesla\u2019s strategic pivot has raised governance red flags.<\/p>\n

On January 28th, the company announced a $2 billion equity investment in xAI<\/a>, CEO Elon Musk\u2019s artificial intelligence venture.<\/p>\n

The move followed a failed shareholder vote on the same proposal in November, where abstentions exceeded votes in favor.<\/p>\n

That Tesla proceeded regardless has irked some investors who worry the company is subordinating automotive recovery to Musk\u2019s side bets on robotics and AI.<\/p>\n

Tesla is cutting Model S and Model X production entirely to make room for Cybercab robotaxis and expand xAI operations, a gamble that hinges on full self-driving technology and humanoid robots achieving commercial viability.<\/p>\n

Analyst sentiment reflects the tension. UBS maintains a Sell rating with a $352 price target, citing valuation concerns and brand damage despite Tesla\u2019s AI ambitions.<\/p>\n

Meanwhile, Thomas Monteiro at Investing.com noted Tesla is \u201centering a transition phase\u201d where it\u2019s asking investors to underwrite potential revenue from software and robots before the auto business stabilizes.<\/p>\n

That is a risky posture when European demand is accelerating downward, and American EV sales fell 36% in Q4 2025.<\/p>\n<\/p><\/div>\n

Source link <\/a>
\n
<\/p>\n","protected":false},"excerpt":{"rendered":"

(Originally posted on : Invezz ) Tesla stock (NASDAQ: TSLA) tumbled over 3.5% in the early trading on Monday as the electric carmaker confronts a convergence of structural headwinds. The Elon Musk-led company is going through multiple issues at once, like collapsing European sales momentum that has accelerated through January, a broad commodity-led market rout […]<\/p>\n","protected":false},"author":3947362395,"featured_media":67470,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[38],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/67469"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362395"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=67469"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/67469\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/67470"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=67469"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=67469"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=67469"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}