Tesla’s European Nightmare: Why Sales Crashed 63%
Europe’s love affair with Tesla is hitting a rough patch—and the numbers are brutal. In France, Tesla sales nose-dived 63% last January compared to 2024. But this isn’t just a French flop: Germany, Europe’s auto heartland, saw registrations crash by nearly 60%, while even Tesla’s reliable UK market dipped 12%. Once the undisputed EV king, Tesla’s crown is slipping fast.
Why the Sudden Stall?
Let’s start with Elon Musk’s PR disaster. The billionaire’s recent antics—like joking “Heil Tesla” at a far-right rally in Germany—left Europeans cringing. Pair that with his constant gripes about EU red tape, and you’ve got a recipe for alienating the exact eco-conscious crowd that once championed Tesla.Then there’s the competition. While Tesla fumbles, China’s BYD is eating Tesla’s lunch. Their UK registrations skyrocketed 550% last quarter, and they’re now outselling Tesla in Germany by 69%.
Even old-school rivals like Volkswagen are catching up, rolling out EVs with better tech and flashier designs. Tesla’s lineup? Looking stale next to the newcomers.Cash-strapped buyers aren’t helping either. With inflation squeezing wallets and Germany axing EV subsidies, dropping €50K on a Tesla feels less tempting. Sure, some folks are waiting for the refreshed Model Y—but that doesn’t explain why sales fell off a cliff.
Money Troubles: Profits Tank, Stock Tumbles
The sales crash is bleeding into Tesla’s finances. Last quarter’s earnings were a horror show: profits cratered 71%, and car revenue slid 8%. Investors hit the panic button—shares swung wildly, dipping to $374.32 last week. But here’s the kicker: the stock oddly bounced 4% after-hours, likely because Musk dangled promises of a “robotaxi revolution” by 2025.Analysts aren’t buying it.
JPMorgan’s Ryan Brinkman called Tesla’s valuation “delusional,” noting shares trade 60% above their fair value. Morningstar slashed its price target to $250, warning investors to brace for turbulence. Even Tesla’s $28B cash cushion can’t hide the cracks—Musk’s political distractions and Trump’s tariff threats have Wall Street sweating.
Can Tesla Fix This Mess?
Maybe. But they’ll need to:
- Shut down Musk’s Twitter finger: His far-right flirtations are toxic in Europe.
- Speed up the Model Y refresh: The Cybertruck’s nowhere in sight here.
- Slash prices: With BYD’s $25K Seagull stealing budget buyers, Tesla’s premium pricing looks wobbly.
