Tesla's stock price plummeted by 5.09% in pre-market trading on Friday, continuing a downward spiral that has seen the electric vehicle maker's shares lose nearly a third of their value in February alone. The decline reflects growing concerns among investors about the company's leadership, sales performance, and competitive threats.

A major factor behind the stock's tumble is the growing perception that CEO Elon Musk's involvement in US politics and his close association with the Trump administration are distracting him from running Tesla effectively. Musk's political affiliation has also raised concerns that it may turn off Tesla's traditional customer base of environmentally-conscious, left-leaning consumers.

Adding to the worries are Tesla's recent sales slumps in key markets like Europe and California. In Europe, Tesla's sales plunged by nearly 45% year-over-year in January, while in California, the company's sales fell by nearly 12% for the full year 2024. These figures have fueled doubts about Tesla's ability to sustain growth in the face of intensifying competition from rivals, particularly Chinese EV makers like BYD, which are offering advanced autonomous driving features at lower prices.

Investors are also growing impatient with Tesla's failure to deliver on promises of new products like cheaper electric vehicles and fully autonomous robo-taxis. These potential revenue streams are crucial for justifying Tesla's lofty valuation, which remains high despite the recent stock price decline. With a price-to-earnings ratio of over 130, Tesla needs to demonstrate its ability to expand beyond traditional car sales and into new markets.