Tesla Stock Plummets by 14.26% Amid China's Market Woes

The shares of Tesla plummeted by 14.26% in the market, closing at $284.7 after a drastic wipeout that netted $1.53 billion in daily losses. The company's market value sank below $10 billion for the first time since its inception, with sales volume decreasing to roughly $92 billion.

Some analysts couldn't help but poke fun at Tesla's fortune going down in one "little Xiaomi", referring to Xiaomi Group, whose current valuation exceeds $17 billion.

Experts point out that the erratic fluctuations in Tesla's value are due to multiple factors affecting its growth. Firstly, the U.S. administration announced plans to cancel the 7,500-dollar tax credit for electric vehicles, scheduled to end in December 2025 but reportedly set for early expiration. Additionally, hefty tariffs on steel and iron are making production costs soar further decreasing profit margins.

Tesla's market performance has also hit a low. In May 2025, Tesla sold only 61,662 units in China, marking a year-over-year drop of 15%. For the first four months of this year, Tesla had recorded a cumulative sales volume of 231,200 vehicles, with year-on-year decline of 18.3%. Its exports also fell by an astonishing 43% during the same period.

In Europe -- particularly in Germany, France and Britain -- Tesla's market presence crumbled between May due to sales dropping up to 36-67% compared to a year ago, according to reports compiled by /car/ magazine (translated).