Tesla’s (TSLA) car sales dropped sharply in October across many European countries, including Spain, the Netherlands, and the Nordic region. After a brief sales increase in September, the EV maker’s struggles returned due to growing competition and an aging vehicle lineup. In fact, industry data showed that Tesla’s new car registrations fell by 89% in Sweden, 86% in Denmark, 50% in Norway, and 48% in the Netherlands. In Spain, Tesla sales dropped by 31% even as overall electric and hybrid car sales rose by 119%. Only in France did Tesla see a small sales increase for the second month in a row.
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As a result, although Tesla is still the top-selling brand in Norway, where almost all new cars are electric, the company is falling behind in Europe as a whole. So far in 2024, Tesla’s sales have dropped 28.5% compared to the same time last year. This is happening as traditional carmakers and Chinese brands release many new EV models, while Tesla has few new options. On top of that, CEO Elon Musk’s political activity—such as supporting Donald Trump’s election and far-right European parties—has led to some consumer backlash in the region.
Competition from Chinese EV makers is also growing fast. In Denmark and Spain, companies like BYD (BYDDF), Xpeng (XPEV), MG, and Chery outsold Tesla. In Sweden, Tesla sold only 133 cars in October. While other brands, such as Fiat (STLA) and Mazda (MZDAF), are also seeing sales drop by 15–18% as they update their models, Tesla’s decline has been steeper, at nearly 39% in the EU. Some experts believe that part of this larger drop may be attributed to Elon Musk’s controversial image, referring to it as “the Musk factor.” Nevertheless, shares are up at the time of writing.
What Is the Prediction for Tesla Stock?
Turning to Wall Street, analysts have a Hold consensus rating on Tesla stock based on 14 Buys, 10 Holds, and 10 Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average Tesla price target of $395.54 per share implies 15.8% downside risk.
