<div id="readability-page-1">Shares of Tesla (TSLA -6.89%) are trading lower on Tuesday. The company's stock had lost 7.5% as of 10:30 a.m. ET and as much as 8% earlier in the day. The drop comes as the S&amp;P 500 lost 1.9%, and the Nasdaq Composite lost 2%. The electric vehicle (EV) pioneer is seeing its sales in the critical Chinese market drop significantly. <h2>Wholesale slump</h2> Preliminary data from China's Passenger Car Association showed a precipitous drop in shipments from Tesla's factory in Shanghai for the month of February. The company delivered just 30,688 vehicles, down 49% year over year from last February's 60,172 vehicles. The figure is also down month over month with Tesla shipping 63,238 vehicles in January. Tesla is falling further behind its rival, the Chinese EV maker BYD, which sold more than 318,000 vehicles in China last month, up 161% year over year. <h2>It's not just China</h2> While a drop in wholesale shipments could reflect strategic decisions not directly correlated to a drop in consumer sentiment, it's likely a major factor given what is happening in other markets. Tesla retail sales are cratering across Europe, despite growth in the broader EV market. The company's January sales were down 45% year over year. New data for February out of Nordic countries show a similar pattern, with sales down 42% in Sweden and 48% in Denmark. Tesla is facing increased competition from EV makers like BYD as well as legacy car makers from Europe and Japan. It appears that the early dominance Tesla once enjoyed has eroded. </div>

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Tesla's stock (TSLA) fell by 7.5% on Tuesday, reflecting broader market declines with the S&P 500 down 1.9% and Nasdaq down 2%. The drop is attributed to a significant decrease in sales in China, where Tesla delivered only 30,688 vehicles in February, a 49% year-over-year decline. Additionally, Tesla's retail sales in Europe are also plummeting, with January sales down 45% year-over-year. Increased competition from BYD and other automakers is contributing to Tesla's declining market position.

- Tesla's shares are down 6.89% as of Tuesday, reflecting a broader market decline with the S&P 500 and Nasdaq Composite losing 1.9% and 2%, respectively.  
- The company reported a 49% year-over-year drop in vehicle deliveries in China, with only 30,688 units shipped in February, significantly trailing behind rival BYD's sales.  
- Additionally, Tesla's retail sales are declining in Europe, with January figures down 45% year-over-year, indicating increased competition and a loss of market dominance.  

Why Tesla Stock Is Plummeting Today