Tesla Stock Drops 2.67% Amid European Sales Slump

On April 2, 2025, Tesla's stock experienced a 2.67% drop in pre-market trading, reflecting ongoing challenges faced by the electric vehicle giant.

Tesla's sales in Europe have seen a significant decline, with March 2025 data showing a 55.3% drop in sales compared to the same period in 2024. This trend is not isolated to Holland, as Tesla's sales in other European markets, such as Denmark, Sweden, and France, have also decreased substantially. The decline in sales is attributed to several factors, including increased competition from Chinese electric vehicle manufacturers and consumer backlash against CEO Elon Musk's political stances.

In addition to sales challenges, Tesla is facing production issues with its Cybertruck model. The company has a significant inventory of Cybertrucks, indicating slow sales and potential production overcapacity. This, combined with the overall decline in sales, has raised concerns about Tesla's ability to maintain its market position in the face of increasing competition.

Tesla's stock performance has been further impacted by negative analyst reports. Financial institutions, including Wells Fargo, have issued bearish reports on Tesla, citing concerns about slowing delivery growth, price reductions, and potential issues with Tesla's autonomous driving technology. These reports have contributed to the overall bearish sentiment surrounding Tesla's stock.