Tesla shareholders are facing a turbulent start to the year as the company’s stock has plummeted roughly 25% year-to-date, wiping out its status as a trillion-dollar company. The intense selling pressure has also taken a toll on CEO Elon Musk’s net worth, which has dropped by $75 billion since January, according to the Bloomberg Billionaires Index. Despite the setback, Musk remains the world’s richest man, with Tesla shares still making up the majority of his wealth.

The electric vehicle (EV) giant is grappling with challenges on multiple fronts. In China, Tesla’s long-awaited self-driving upgrade has failed to impress customers, with many complaining that the new system does not deliver on Musk’s promises of advancing toward full autonomy. This puts Tesla at a competitive disadvantage as domestic EV manufacturers offer similar, if not better, self-driving features at significantly lower costs.

Meanwhile, Tesla is losing ground in Europe, where its brand appeal appears to be waning. Sales across the continent dropped 45% in January, hitting a two-year low. In contrast, total EV sales in the region surged 37% over the same period. The decline was particularly sharp in key markets like Germany, where Tesla registrations fell to their lowest level in three and a half years, and France, where they reached a two-and-a-half-year low. In the United Kingdom, Chinese automaker BYD outsold Tesla for the first time ever, signaling a shift in consumer preference.

These troubling signs follow a disappointing fourth-quarter sales report, despite Tesla implementing price cuts in some regions to boost demand. As competition from Chinese and European automakers intensifies, Tesla faces mounting pressure to reclaim its dominance in the global EV market.

Credit: TheStreet