Tesla’s (TSLA) dismal start to the year in Europe continued as sales plunged over 40% last month as the company was rocked by tougher competition in the electric vehicle market and antipathy towards CEO Elon Musk.
Combined Tesla new car registrations in the European Union, the European Free Trade Association and the UK slid 40.1% year-on-year in February to 16,888 units, according to the European Automobile Manufacturers’ Association. The data broadly confirmed earlier reports from JATO Dynamics.
Tesla Market Share Collapses
Market share in the region shrank to from 2.8% to 1.8% and the decline for Tesla, which comes after a similar 45% slump in sales in January, was set against a healthy market that saw EV registrations in Europe grow 26.1% year-on-year in February.
Tesla is facing increasingly tough competition, particularly from Chinese EV players like SAIC, which saw sales in the region leap more than 26% last month. Meanwhile, Musk’s close ties to the White House and support for right-wing parties such as the AfD in Germany has sparked a backlash in Europe and elsewhere, with a slew of arson attacks on Tesla showrooms highlighting how tensions have flared.
Among the other automakers, Volkswagen (VWAGY) saw its sales rise 4% in February, while Chrysler-owner Stellantis (STLA) posted a 16.2% decline in sales. Ford (F) sales were down 5.8%, while Renault (RNLSY) enjoyed a 10.8% rise in sales from the same month a year before.
Within just the European Union, across the first two months of 2025, new battery-electric car sales grew by 28.4%, to 255,489 units, capturing 15.2% of total market share. Overall, new EU car registrations declined by 3% compared to the same period in 2024.
Is Tesla a Buy, Sell, or Hold?
On Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 11 Holds, and 11 Sells assigned in the past three months. The average TSLA price target of $335.32 per share implies about 20% upside potential.
