Tesla's stock price dropped 8%, marking a decline in market value to below $1 trillion for the first time since November. This was attributed to a reported 45% decline in Tesla's electric vehicle sales in Europe in January, while overall EV sales in the region rose by 37%. The drop raises concerns over CEO Elon Musk's focus, especially with his additional responsibilities in government and other companies. Investor worries about the stock's high valuation in comparison to competitors and potential over-investment in AI were also noted.
"He's a very hands-on operator, and if you're spending that much time in an office in the White House, how much time are you spending running all of your other companies, including the one that's publicly traded?"
"Concerns about potential over-investment in artificial intelligence are also weighing on Tesla, as well as Microsoft and Meta Platforms ahead of AI chip heavyweight Nvidia's quarterly report on Wednesday."
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