Tesla (TSLA) shares fell 1.2% in pre-market trading after the American electric vehicle (EV) maker recorded significant sales declines across several European countries. These drops, which began following CEO Elon Musk’s far-right political comments in late 2024, continued into November. Registrations, a close proxy for sales, plummeted 58% in France to 1,593 units, 49% in Denmark to 534 units, and 59% in Sweden to 588 units, according to data from Mobility Sweden.
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Tesla struggles to rebuild customer confidence in Europe amid rising competition from both local companies and Chinese rivals. The company also grapples with an aging model lineup, production delays, and supply chain issues, which extend delivery times. To counter this, Tesla launched a more affordable Model Y in Europe, though it did not get an immediate sales bump across the region.
Tesla’s Mixed Model Performance in Denmark
In Denmark, Model Y registrations dropped 74%, while Model 3 sales rose 29% to 326 units, making it the eighth best-selling car. The Model Y was the 23rd best auto in November, selling 206 units.
Competition in Europe has intensified as more brands such as Volkswagen (VWAGY), Skoda, and several Chinese manufacturers have expanded their offerings. BYD’s (BYDDF) impressive growth in Europe has been especially significant, capturing market share previously held by Tesla.
Norway Leads with 35% Sales Jump
A bright spot in Tesla’s European sales was Norway, which recorded 34.6% year-to-date sales growth over the same period last year. Tesla registered 6,215 autos in November and 28,606 for the eleven months, backed by solid demand for Tesla’s Model Y SUV.
Tesla remains a key player in Europe, but November’s figures highlight how rapidly demand can change in smaller yet significant markets like Denmark. This decline raises fresh doubts as to whether this is just a temporary dip, or is Tesla facing a new era of intensified competition?
Is TSLA Stock a Buy, Hold, or Sell?
Analysts remain sidelined on Tesla’s long-term outlook. On TipRanks, TSLA stock has a Hold consensus rating based on 13 Buys, 11 Holds, and 10 Sell ratings. The average Tesla price target of $388.04 implies nearly 11% downside potential from current levels. Year-to-date, TSLA stock has gained 6.5%.
