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Tesla (Nasdaq: TSLA) is facing significant challenges in Europe as sales of its electric vehicles have sharply declined due to a backlash against CEO Elon Musk’s political involvement. The controversy stems from Musk’s endorsement of the far-right Alternative for Germany (AfD) party, which has sparked criticism from German political leaders and raised concerns in Brussels about the influence of his social media platform, X. This political entanglement has coincided with a notable drop in Tesla’s market share across key European countries.
Tesla Sales in Germany Down 59.5% y/y Amid Broader European Decline
Tesla’s sales figures in Europe have taken a noticeable hit, particularly in Germany, where new car registrations have fallen by 59.5% compared to the previous year. This decline is striking, given that the overall electric vehicle market in Germany has grown by more than 50% during the same period.
Similar trends are evident in other European countries, with sales in France and Norway dropping by 63% and 38%, respectively. The UK has also seen an 8% decrease in Tesla sales. While some analysts attribute this downturn to consumers potentially waiting for upgraded models, the impact of Musk’s political actions cannot be overlooked.Tesla’s stock has experienced fluctuations amid the ongoing controversy. The stock opened at $373.11 and is currently trading at $366.28, reflecting a downward trend. The day’s low was $363.18, while the high reached $375.4.
The stock’s performance has been volatile, with a 52-week range between $138.8 and $488.54. Despite these fluctuations, Tesla maintains a substantial market capitalization of over $1.17 trillion. Analysts have issued a “hold” recommendation, with a target mean price of $332.98, indicating cautious optimism about the company’s future prospects.
Tesla Stock Remains Shaky
Recent historical data reveals a pattern of ups and downs in Tesla’s stock price. In January 2025, the stock saw a series of fluctuations, with notable peaks and troughs. For instance, the stock opened at $409.90 on January 15 and closed at $428.22, followed by a decline to $413.82 on January 16.
The stock’s performance in late January and early February continued to show variability, with closing prices ranging from $406.58 on January 24 to $392.21 on February 4.As Tesla navigates the challenges posed by declining sales in Europe and the political controversy surrounding its CEO, the company’s future remains uncertain.
While some investors remain optimistic, as reflected in the analyst target prices, the broader implications of Musk’s political involvement and its impact on Tesla’s brand image could shape the company’s trajectory in the coming months.More By This Author:Eli Lilly’s Q4 2024 Revenue Surges By 45% To $13.53 Billion
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