Tesla stock sinks as Europe sales tank on rival offerings, Musk blowback

Published On Feb 25, 2025, 4:08 PM

Tesla's stock has dropped significantly as reports show that its sales in Europe have plummeted by 45% in January, falling from nearly 18,000 registrations to just under 10,000. This decline comes amidst a strong overall EV market, indicating that competitors like Volkswagen and Chinese brands are gaining traction while demand for Tesla's vehicles wanes. Elon Musk's recent political controversies may also be impacting the company's reputation in the region. The stock closed down 8.4% on Tuesday, and has fallen 25% in 2025 so far.

Stock Forecasts

TSLA

Negative

With declining sales in Europe and increasing competition, Tesla may continue to struggle in the short term. The political controversies surrounding Musk further contribute to a negative sentiment around the stock. Hence, a bearish outlook seems appropriate in this scenario until there are signs of substantial recovery in sales or brand perception.

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Shares in the US electric carmaker dropped after European sales halved in January.

Tesla's (TSLA) demand woes are picking up in Europe, with sales dropping a precipitous 45% in January.