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In May, electric car maker Tesla (TSLA) recorded a significant decline in sales in many European countries, continuing its series of monthly shortfalls since January, which has attracted a lot of attention. However, management hopes that the company’s top selling vehicle, Refresh Model Y, will help rebound sales. And Tesla has seen a lot of negative reports in Europe, but is feeling a pinch in China as homemade EV makers increase the pressure. CEO Elon Musk And company.
Add it all and tackle the amazingly revived stocks – and investors may be asking where the value is.
Tesla sales will no longer be available in May
Tesla’s May sales across Europe looked brooding – Same as April’s sales – With one strange exception:
- Sweden: -54%
- Portugal: -68%
- Denmark: -31%
- Netherlands: -36%
- Spain: -19%
- France: -67%
Meanwhile, in Norway, Tesla’s sales rose by 213% year-on-year in May. One important difference is that Norwegian buyers have begun receiving the updated Model Y, but models will only be available in major countries such as Germany, Italy, France and the UK in June.
So this month may prove particularly interesting in determining how the Tesla brand is undermined For CEO Elon Musk’s political activities Also, how much of the decline in sales is due to the date model Y? MUSK was part of the Department of Government Efficiency (DOGE), which reduced key US government programs. He also has provoked backlash against the US and European Tesla, including protests and vandalism, and supports far-right European politicians.
However, Tesla reportedly offers economic incentives for cars in key markets, including France, the UK and Germany, and doesn’t seem to want to seize the opportunity to launch the updated Model Y. Meanwhile, Norwegian buyers can enjoy interest-free financing.
Of course, this incentive hurts Tesla’s margins, which are already relatively thin levels, but they also seem to suggest companies that desperately need positive coverage. Tesla sales in Europe have flagged it to start 2025, but sales from rivals, including China’s BYD, continue to surge, indicating that Tesla is losing market share. Incentives help to fix this – at cost.
However, a recent study from the Norwegian School of Economics shows that more is happening in Norway. CNBC said the country is encouraging EV purchases with a large amount of perks, including lower sales taxes and low parking and road tolls. This profit cocktail could make Norwegian buyers more likely to emit cash to Tesla and other EV companies.
Tesla’s problems go beyond Europe
The decline in Tesla’s sales in Europe and masks’ foray into politics has attracted a lot of attention to launch 2025, but the company’s problems could be much deeper. Musk’s political involvement is undoubtedly hurting the Tesla brand, but the key question is how long it takes. However, the company’s image is Tesla’s second-largest market, and China, which accounted for 40% of its first quarter sales.
A recent report from Swiss Investment Bank UBS suggests that Chinese buyers are currently placing Tesla as their third spot and third spot after domestic rivals BYD and Xiaomi. Tesla’s rating as China’s top EV selection fell from 18% the previous year to 14% this year. However, the survey also found that Tesla is rated the highest among foreign EV manufacturers.
However, China’s decline in perception is also reflected worldwide, with a survey suggesting that 36% of consumers would consider purchasing Tesla from 39% in 2024. And it’s not just overseas that Tesla’s brand is under pressure. A UBS study also shows that Tesla has declined as the biggest option among US consumers. This is from 38% last year to 29% this year.
These numbers suggest brands poised to lose their image as an outstanding EV manufacturer. Without a doubt, Tesla can continue to expand its sales from an absolute standpoint, as long as the entire EV market continues to expand vigorously. However, sales results and this latest brand survey are Tesla’s subsector advantage appears to be declining.
Therefore, it may not be surprising to Tesla’s board of directors – It is rumoured that he recently hired an executive search company to find a mask alternative – They reportedly decided to stick to the leader who moved them through a lot of tough spots before. in fact, Tesla is reportedly preparing a large pay package If the mask fails to receive a previously agreed pay package that was overturned by a Delaware court.
All sales news, brand awareness plummet Large-scale valuations underlying Tesla’s stock Investors should be given enough pause. The stock has rebounded significantly over the past few months, falling more than 50% from the stock’s record high in December, and it has become a more risky proposal than it was a few weeks ago as bad news continues.
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