Tesla Inc. shares are trading lower after the electric vehicle maker reported its fifth consecutive month of declining sales in the European market. This decline comes despite the broader electric vehicle segment growing by 27.2% in the region.
Key Points to Know
- Tesla’s new vehicle sales fell 27.9% year-over-year in Europe last month.
- The company’s market share in Europe dropped to just 1.2%, compared to 1.8% in the same month last year.
- The broader European market saw a modest 1.9% increase in overall new car sales last month.
- Tesla’s performance diverged sharply from that of its competitors, with legacy automakers and Chinese EV firms continuing to gain ground.
Challenges in Europe
The decline highlights ongoing challenges for Tesla in Europe, including:
- Rising competition from state-backed Chinese manufacturers
- Pricing pressure across the EV market
- Shifting consumer sentiment
Recent Developments
The decline in Tesla shares comes after shares moved higher to start the week following the company’s “successful” robotaxi launch in Austin. Analysts had mixed reactions to the event, with some predicting that the rollout will accelerate and others maintaining a Sell rating.
Analyst Reactions
- Wedbush’s Dan Ives predicts that the rollout will accelerate and suggests that Tesla’s autonomous arm is worth $1 trillion alone.
- UBS maintained a Sell rating and lifted its price target to $215.
- Guggenheim reiterated a Sell rating with a price target of $175.
Current Price Action
Tesla shares were down 4.14% at $326.40 at the time of publication.
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Note
All information is current as of the time of publication and may not reflect current market conditions.