Tesla ( (TSLA) ) has been popular among investors this week. Here is a recap of the key news on this stock.
Tesla is facing significant challenges in the European market as its sales continue to decline sharply in the second quarter of 2025. Despite the availability of the updated Model Y and increased production at its Berlin Gigafactory, Tesla’s sales in Europe have dropped by 37% year-over-year in Q1 2025 and are tracking about 50% lower in five major European markets compared to Q2 2024. This decline is occurring even as overall electric vehicle sales in Europe surged by 24% in the same period, indicating that Tesla is losing market share to competitors.
The situation is exacerbated by weak sales figures in key countries such as France, Denmark, and Portugal, where Tesla’s deliveries have plummeted. The poor performance of Tesla’s higher-priced all-wheel-drive models and the negative sentiment towards CEO Elon Musk are contributing factors to the declining demand. Analysts have a Hold consensus rating on Tesla stock, with an average price target of $283.69, suggesting limited upside potential. Investors are concerned about Tesla’s ability to regain its footing in the competitive European market.