Tesla Shares Sink Again At The Back Of Low Sales In China, Elon Musk's EV Maker Shrinks In Market Cap

Tesla, the largest EV maker in the world, is having a tough time holding onto that tag of being the biggest in the business. This comes to pass at a time when the Elon Musk-led company, due to multiple factors, is vying both on the balance sheet and at the equity markets.

Tesla Shares Slide Further

The company shares sank at Wall Street again, further shrinking its size. In the intraday trade on Tuesday, March 18, the company shares further slumped by 5.34 per cent or USD 12.70.

This brought the overall value of the company shares to USD 225.31. This figure is far behind its 52-week high of USD 488.54 per piece.

The China Factor

This new fall is largely being attributed to another set of disappointing figures emerging from the end of the sale. This time from China. As per reports, the company sold fewer than-expected cars in one of the largest EV markets in the world (China).

Tesla, as per reports, has sold 98,800 vehicles in China in the first quarter. This is close to 4,000 fewer vehicles than during the same period in Q1 2024.

In addition, the global numbers are also below the Wall Street estimates, furthering a certain panic in the market.

Elon Musk's Mayhem

The company has been under immense pressure, due to Elon Musk's doings, as the head of DOGE and the spearhead of a global neo-alt-right movement, that is looking to clamp down on progressive policies across the board, not limiting itself to the US.

As a result of this, the company has had to take the pain of it all, as the Tesla owners have faced criticism, apart from protests at the company's manufacturing facilities.

The overall decline in company share price over the past month of trade amounts to USD 128.80 or around 36.37 per cent.

As a result of this, Tesla's positioning on the list of largest companies, in terms of market capitalisation has declined to 12, with a total value of USD 724.71 billion, almost half of what it had in mid-December, 2024.