Read in app Tesla dropped 4% in early trading on Tuesday on a disappointing sales update out of China. Sales of Tesla EVs made in China fell more than 49% in February. The data came shortly after figures showed sales had recently plunged in Europe. The move: Tesla stock dropped more than 4% to $272.49 per share on Tuesday. The move extends a sharp slide for the stock so far in 2025, with shares down 30% year-to-date. Why: The drop on Tuesday came as Tesla's sales of electric vehicles made in China plunged 49.2% in February compared with a year ago. Tesla sold 30,688 China-made EVs, the lowest figure since August 2022. Chinese-made vehicle sales dropped 28.7% on an annual basis in the first two months of 2025, according to industry data cited by Reuters. Tesla manufactures Model 3 and Model Y cars in China. Vehicles made in the country are sold internationally. What it means: This isn't the first sales report to drag Tesla's stock into the red this year. A 45% year-on-year plunge in European January sales fueled last month's market decline. The big drop in sales was in contrast to what's generally been a positive trend for Europe's EV market, with some rivals witnessing a surge in car registrations in the same month. While China's Lunar New Year holiday may have contributed to Tesla's falling sales numbers, the same pattern emerges: Tesla's Chinese competitor BYD notched a 90.4% jump in vehicle sales last month, reaching 614,679 cars. Rising competition can explain part of the story behind Tesla's falling numbers. The sales decline could also reflect a changing attitude toward CEO Elon Musk, who has grown more involved in European and US politics. Read next