Despite Nvidia’s rally boosting the U.S. stock market, all American electric vehicle stocks declined, with Tesla plunging more than 3%.

On Wednesday, Tesla’s stock dropped 3.58%, Rivian’s stock fell 0.78%, Lucid’s stock declined 0.68%, and Nikola’s stock slipped 0.72% on the New York Stock Exchange.

Tesla’s sharp decline was primarily driven by rising concerns over “Musk risk.” The stock closed at $378.17, down 3.58%, bringing its market capitalization to $1.216 trillion.

The German Federal Motor Transport Authority reported that Tesla sold only 1,277 electric vehicles in January, a steep 59% year-over-year decline and the lowest monthly sales figure since July 2021.

Tesla also saw sales declines in France and the UK last month, signaling a downturn across Europe’s three largest electric vehicle markets.

Concerns escalated as CEO Elon Musk’s political involvement negatively affected Tesla’s business in key markets.

Since stepping into political affairs, Musk has drawn attention for his involvement in European issues, sparking controversy across the continent.

A Bloomberg analysis suggests that Musk’s deteriorating reputation in Europe has sharply dropped Tesla’s sales.

Investor concerns over “Musk risk” have now materialized, contributing to Tesla’s steep decline.

Tesla’s slump also dragged down other electric vehicle stocks. Rivian fell 0.78% to $12.77, Lucid dropped 0.68% to $2.91, and Nikola declined 0.72% to $0.78.

Despite Nvidia’s rally boosting the U.S. stock market, all American electric vehicle stock …

Tesla Dips Over 3% Amid Rising ‘Musk Risk’ and Declining European Sales