EV maker Tesla (TSLA) saw its European sales continue to slide in August due to rising competition and CEO Elon Musk‘s political views. In France, Tesla car registrations dropped by 47.3% compared to August 2024, even as the overall car market rose by 2.2%. The situation was even worse in Sweden, where Tesla registrations fell by over 84%, and in Denmark, where they were down by 42%. The Netherlands also saw a 50% decline. Only Spain and Norway showed sales increases for Tesla, but even there, the company was outpaced by Chinese rival BYD (BYDDF).
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More specifically, in Spain, the government offers EV subsidies up to €7,000, which helped Tesla grow by 161% year-over-year. But BYD sales surged more than 400%. So far this year, BYD has sold 14,181 cars in Spain, compared to Tesla’s 9,303. Overall, Tesla is struggling to keep up in Europe. And the company hasn’t launched a new mass-market vehicle since the Model Y in 2020, while both legacy automakers and new Chinese EV brands are introducing fresh models.
Beyond competition, Tesla is also facing damage to its brand. Elon Musk’s political views have turned away some buyers. Indeed, Ginny Buckley, CEO of Electrifying.com, stated that more than half of those surveyed said Musk made them less likely to buy a Tesla. At the same time, Tesla’s sharp price cuts on new cars since 2023 have caused used Teslas to lose a lot of their value. As a result, this is making the secondhand market more appealing, which is hurting new car sales.
What Is the Prediction for Tesla Stock?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 14 Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $306.42 per share implies 8.2% downside risk.
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