Tesla sales tank 45% in Europe as rival offerings and Musk blowback hit demand

Published On Feb 25, 2025, 12:03 PM

Tesla's sales in Europe have seen a dramatic decline of 45% in January, with only 9,945 EVs registered compared to 18,161 in January 2024. This drop comes amid a broader 37.3% increase in overall EV sales in the region, indicating strong demand for electric vehicles but a significant setback for Tesla specifically. Factors contributing to this downturn include an anticipated refresh of the Model Y, increasing competition from manufacturers like Volkswagen and new entrants from China, as well as public backlash against CEO Elon Musk's political activities in Europe. This downturn is reflected in Tesla's stock, which dropped nearly 7% and is down 24% year-to-date.

Stock Forecasts

TSLA

Negative

Tesla is facing declining sales in a competitive market, which may continue to negatively impact its market position. The increase in EV alternatives and political controversies surrounding Musk could create further headwinds for brand perception in Europe. Investors should remain cautious as these dynamics may affect Tesla's future profitability.

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