DAX & Stock Market Crash – Tesla Stock Down 7% on Weak China Sales
Stock markets are bearish once again as the trade war hearts up, with the Tesla stock being 7% lower while Dax made a strong bearish reversal after another record high yesterday.
With European and US stocks under pressure and Tesla facing slowing global demand, investors will be closely monitoring upcoming economic data and corporate earnings. If weak sales trends continue, Tesla could face further downside, while European markets may struggle to regain momentum amid ongoing geopolitical uncertainties.
European Stock Market Closing Levels – Tuesday, March 5
Major European Indices Performance:
- Germany’s DAX: Closed at 22,328.91, down -818.11 points (-3.53%), the biggest decline among major indices.
- France’s CAC 40: Finished at 8,047.92, down -151.79 points (-1.85%).
- UK’s FTSE 100: Ended at 4,719.21, falling -65.58 points (-1.37%), showing relative resilience compared to other European markets.
- Spain’s IBEX: Dropped -341.40 points (-2.55%), closing at 13,031.70.
- Italy’s FTSE MIB: Declined -1,333.24 points (-3.41%), following DAX with heavy losses
- Stoxx 600: -2.2%, broad-based losses across European markets.
After a strong performance yesterday, driven by increased military spending, European stocks faced a sharp decline today. Despite a strong start to the year, today’s session was particularly challenging, with Germany’s DAX falling significantly after hitting record highs on Monday. Broader market sentiment weakened as geopolitical tensions remained elevated.
Tesla Shares Plunge on Disappointing China Sales
Tesla stock plummeted 4% in pre-market trading, following a sharp drop in sales in China, a key market for the company. After opening with a negative gap, shares fell to $261 before recovering slightly to $272, bringing Tesla’s stock back to its pre-election levels. Currently, TSLA is down nearly 7% as concerns over slowing demand intensify.
Tesla’s Sales Decline Across Key Markets
Tesla was expected to maintain strong sales in China due to lower political risk exposure, but the latest data tells a different story. The Passenger Car Association of China reported that Tesla sold only 30,688 vehicles in February, marking a 49% decline from 63,238 sales a year earlier.
Beyond China, Tesla’s challenges appear even greater. In Australia, sales plunged 71.9%, with only 1,592 transactions in February, indicating a steeper decline in other regions. Meanwhile, North American and European sales are also showing signs of slowing, raising concerns about Tesla’s overall demand outlook.
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