Tesla’s (TSLA) sales in Scandinavia have taken a hit as registrations plummeted from 42-48% in Sweden, Norway, and Denmark. A similar decline happened in France, with Tesla registrations falling 45% over the first two months of the year compared to the same period in 2024. These results are leading to a significant loss of market share for the electric vehicle maker. Indeed, in Norway, where almost all new cars are fully electric, Tesla’s share of overall car sales has slipped to 8.8% year-to-date from a market-leading position of 18.9% for the full year of 2024.
One major factor that is contributing to Tesla’s struggles is the growing competition from rivals like Volkswagen (VWAGY) and Toyota (TM). In fact, these companies have introduced newer model lineups that are attracting customers who might have otherwise chosen Tesla. Additionally, CEO Elon Musk’s involvement in U.S. politics and his endorsement of far-right views in Europe have caused controversy, which has led to boycotts and “Tesla Takedown” demonstrations. As a result, Tesla’s brand image has taken a hit and has caused some potential buyers to look for alternatives.
Unsurprisingly, some industry experts are now unsure about whether or not Tesla can recapture its leading market position due to the growing unrest around the brand and Musk. For example, the Norwegian Road Federation stated that Tesla’s unique market position in Norway is uncertain, and it may take several months to fully assess the impact on sales. However, Tesla does have an opportunity to win back customers and regain its momentum in the region with the upcoming launch of the redesigned Model Y.
Is Tesla a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 12 Holds, and 10 Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $351.38 per share implies 17.72% upside potential.
