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Tesla shares experienced a downturn of over 4% on Thursday following the release of European sales data, which revealed a continued slump despite robust regional demand for fully electric vehicles.
According to figures released by the European Automobile Manufacturers’ Association (ACEA) on Thursday, Tesla’s EV registrations in Europe, a key indicator of sales performance, saw a decline of roughly 23% year-over-year in August.
Specifically, the data shows 14,831 Tesla EV registrations in Europe last month, a dip from the 19,136 registrations recorded in August 2024. Over the first eight months of the year, Tesla’s European EV registrations have decreased by 32.6%, according to the ACEA.
This contraction contrasts with the broader trend in the European EV market, where total EV registrations across the region have risen by approximately 26% through August compared to the same period in 2024. Conversely, registrations for petrol and diesel-powered vehicles have fallen by over 20% during the same timeframe, highlighting the ongoing shift towards electrification.
However, analysts at RBC present a more optimistic outlook, projecting Tesla’s total deliveries for the third quarter to reach 456,000 units. This figure surpasses the consensus estimates of 448,000 deliveries compiled by FactSet and 440,000 deliveries according to Visible Alpha.
RBC’s analysts anticipate a boost for Tesla fueled by consumers in the U.S. rushing to finalize EV purchases before the expiration of a $7,500 federal tax credit at the end of September. This potential surge in demand could significantly offset the sluggish European performance.
Despite Thursday’s drop, Tesla’s stock has demonstrated resilience following a challenging start to the year. The stock is currently up 5% in 2025, recovering from a sharp 36% decline in the first quarter, marking its worst performance since 2022.
Beyond pure market mechanics, some analysts suggest that Elon Musk’s increased political involvement in the U.S. and internationally may be impacting the Tesla brand, potentially diminishing its appeal to some prospective EV buyers. The increasingly polarized political climate and Musk’s outspoken views are seen as potential headwinds for brand image.
Earlier this year, Musk’s endorsement of Germany’s far-right AfD party, and his subsequent video appearance at an anti-immigrant rally in the U.K., led by activist Tommy Robinson, a convicted fraudster, sparked controversy. The British Prime Minister Keir Starmer criticized Musk’s “dangerous” comments at the rally, where numerous police officers were injured. Musk’s statements to attendees, including “violence is coming to you” and “you either fight back or you die,” were particularly controversial.
Looking to reinvigorate brand interest and regain market share, Tesla has announced plans for a new, more affordable model. This strategic move is designed to help the company defend its position against increasing competition from Volkswagen, BYD, and other EV manufacturers that are aggressively vying for market share.
The success of this new model will be crucial for Tesla’s future growth trajectory, particularly in light of increasing consumer choice and evolving market dynamics. The competitive landscape is rapidly intensifying, requiring Tesla to innovate continuously and adapt to changing consumer preferences to maintain its leadership position.
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Original article, Author: Tobias. If you wish to reprint this article, please indicate the source:https://aicnbc.com/9966.html
