Tesla stock (TSLA) opened Tuesday on the back foot after sales in Germany nosedived 46% in April — another red flag in a year already packed with headaches.
Tesla’s Sales Plunge Adds to European Pressure
The Federal Motor Transit Authority reported that Tesla sold just 885 vehicles in Germany last month. That figure was down nearly half from a year ago, marking one of the sharpest drops the company has seen in a key EV market.
Zooming out, the picture doesn’t improve much. Across Europe, Tesla sales fell 37% in Q1. Globally, it delivered around 337,000 vehicles — a 13% year-over-year drop.
Investors were already skittish. This fresh hit to volume has only added fuel to concerns that something deeper is weighing on demand.
Musk Tries to Deflect Brand Damage
Tesla execs have already admitted there are “brand challenges,” according to the Q1 earnings call. And while Elon Musk recently said he’d spend less time leading government affairs in Washington, D.C., it may be too little too late. Some investors suspect Musk’s political antics are starting to eat into customer loyalty.
Even Tesla’s go-to sales weapon — the Model Y — isn’t delivering. The updated version hasn’t sparked the rebound bulls were hoping for.
Tariff Fallout Still Looms
Then there’s the tariff mess. Even though Tesla builds its U.S. vehicles domestically, it still relies on imported parts. That means it can’t fully sidestep the impact of President Donald Trump’s auto tariff changes.
“Tariffs are still tough on a company when margins are still low,” said Elon Musk during the company’s Q1 earnings call. Tesla’s 2% operating profit margin is now its worst since mid-2019.
TSLA Stock Still Trails Peers in 2025
Tesla stock is down about 31% year-to-date, while General Motors (GM) and Stellantis (STLA) have slipped 15% and 28%, respectively. Ford and Rivian are both slightly in the green.
Without a clear demand rebound — and with margins this thin — Tesla’s next earnings might be its most important yet.
Is Tesla a Buy, Sell, or Hold?
Tesla stock currently sits at an average 12-month TSLA price target of $284.23, based on forecasts from 37 Wall Street analysts. While the highest prediction hits $450, the lowest dips sharply to $115, reflecting the wide uncertainty around the stock’s trajectory.
Analyst sentiment is split: 16 say Buy, 10 Hold, and 11 Sell, classifying Tesla as a Hold overall. That’s a cautious stance, likely tied to poor international sales, ongoing tariff threats, and CEO Elon Musk’s political distractions.
The modest 1.42% upside from Tesla’s current price of $280.26 suggests investors may already be pricing in much of the risk. But the wide target range shows not everyone agrees on what happens next.
