Electric vehicle (EV) king Tesla (TSLA) staged a late 2024 rally as CEO Elon Musk solidified himself as one of President Donald Trump’s key allies, securing a leadership role in the newly created Department of Government Efficiency.

Tesla sales are dropping like a rock in Europe based on early sales numbers coming for January 2025. Many are linking this to dissatisfaction with CEO Elon Musk’s meddling in European politics. While there’s undoubtedly some of that going on, it’s not the only factor.

Musk is betting big on AI, AVs and Optimus, believing they'll make Tesla the world's most valuable company. But should you buy the stock on his optimism?

Tesla shares were sliding nearly 5% in midday trading. Tesla’s stock (Nasdaq:TSLA) moved lower once again Monday, falling almost 5% in midday trading, the continuation of a fairly steady decline since Donald Trump took office.

January sales plunged 63% in France, the second biggest market in the European Union for electric vehicles (EVs).Maximize Your

In many ways, these have been tough days for Tesla. Falling sales. Squeezed profit margins. Proposed changes in US government policy that could cost the company billions.

Tesla (NASDAQ: TSLA) shares initially shrugged off a weak earnings report before the stock got caught in the trade-war sell-off. The electric vehicle (EV) maker had a tough year in 2024, although Chief Executive Officer Elon Musk continues to be very upbeat about the future.