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"Unprecedented Slide: Tesla Sales Plummet 45% In Europe As Musk's Net Worth Dives $5.2B In A Week"

Wesley ParkSaturday, Mar 8, 2025 12:17 pm ET
4min read

Ladies and gentlemen, buckle up! We're diving headfirst into the wild world of tesla, where the ride is anything but smooth. In just one week, Elon Musk's net worth has taken a nosedive, plummeting by a staggering $5.2 billion. But that's not all—Tesla's sales in Europe have crashed and burned, dropping a jaw-dropping 45% in January 2025 compared to the same month last year. This is not just a speed bump; it's a full-blown crisis!



The numbers are in, and they're brutal. Tesla sold a mere 9,945 units in January 2025, a 45% plunge from 18,161 units in January 2024. The drop was especially severe in Germany, where sales fell by 59.5% to just 1,277 units, and in France, with a 63% decrease to 1,143 units. Even China’s saic Motors managed to sell more than twice as many cars in January, with 22,994 deliveries. This is a disaster of epic proportions!

But here's the kicker: the overall demand for electric vehicles (EVs) in Europe is surging. BEV sales grew by 37% in the Europe+EFTA+UK region, reaching a market share of 16.7%. So, what's going wrong with Tesla? The answer lies in a perfect storm of factors.

First, there's the elephant in the room: Elon Musk's controversies. His support for Germany’s far-right AfD party and a jailed activist in the UK has stirred up a hornet's nest of negative publicity. The Polish government even called for a boycott of Tesla vehicles after Musk's comments at a campaign event for Germany's right-wing AfD party. This outcry is significant and taken very seriously in Germany, which could be affecting Tesla's sales.

Second, the timing of the Model Y update. With the bestseller getting a significant refresh for 2025, many customers might be holding off, leading to reduced demand for the outgoing version. Additionally, Tesla had to retool its production lines for the new Model Y, which may have caused temporary supply disruptions. This is further supported by the fact that Tesla sold 9,945 units in January 2025, down from 18,161 in January 2024, with the drop being especially severe in Germany, where sales fell by 59.5% to just 1,277 units, and in France, with a 63% decrease to 1,143 units.

Inventory shortages could also be to blame. According to Bloomberg, Tesla might be dealing with low stock levels in certain markets due to an aggressive push to boost year-end numbers in December 2024. This is further supported by the fact that even China’s SAIC Motors managed to sell more than twice as many cars in January, with 22,994 deliveries, compared to Tesla's 9,945 units.



But wait, there's more! Tesla's stock price has dropped by about a third since President Trump took office, erasing virtually all of the stock gains the company enjoyed post-election. The 31 analysts with 12-month price forecasts for Tesla stock have an average target of 314.54, with a low estimate of 24.86 and a high estimate of 550. The average target predicts an increase of 19.75% from the current stock price of 262.67. Analysts believe this stock is likely to perform similarly to the overall market.

So, what's the bottom line? Tesla is in a world of hurt, and it's not just about the sales numbers. The company is facing a perfect storm of negative publicity, supply disruptions, and inventory shortages. But don't count Tesla out just yet. The company has a history of bouncing back from adversity, and with the right strategies, it could turn things around. Stay tuned, folks—this ride is far from over!
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