Tesla (TSLA) Plunges 4.08% as European Sales Drop 55.3%

On April 2, 2025, Tesla's stock dropped 4.08% in pre-market trading, reflecting a challenging period for the electric vehicle giant.

Tesla's sales in Europe have plummeted, with a 55.3% decrease in March 2025 compared to the same period in 2024. This decline is part of a broader trend, as Tesla's sales in Europe have been struggling for several months. The company's market share in Europe has also decreased significantly, dropping to just 1.1% in the first two months of 2025. This downturn is attributed to several factors, including the aging of Tesla's vehicle models and the increasing competition from Chinese electric vehicle manufacturers, which offer more affordable options.

Tesla's troubles in Europe are compounded by the controversial political stance of its CEO, Elon Musk. Musk's public support for right-wing political figures and his involvement in European politics have sparked widespread backlash. This has led to a series of violent incidents targeting Tesla's facilities and vehicles across Europe. The negative sentiment towards Musk has also affected consumer sentiment, with many European consumers expressing reluctance to purchase Tesla vehicles.

In addition to its European challenges, Tesla is also facing difficulties in the United States. The company has a significant inventory of its Cybertruck model, indicating slow sales. This comes despite Tesla's efforts to ramp up production of the Cybertruck over the past year and a half. The slow sales of the Cybertruck, combined with the company's struggles in Europe, have raised concerns about Tesla's ability to maintain its market position.