Tesla’s (TSLA) January sales in Europe have sparked concerns for the American EV maker, with sharp declines reported across key markets. The dip in Tesla’s popularity in Europe may be partly attributed to the recent political drama, involving its CEO, Elon Musk. Additionally, increased competition from rival automakers and Tesla’s limited vehicle lineup have also played a role in the European sales slump. As a result, TSLA stock has plunged to its lowest point in 2025, driven by investor worries over disappointing performance in Europe. Interestingly, the drop in Tesla’s stock follows an impressive 70% rally in 2024.
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Musk’s Political Storm Shadows EU Sales
Musk’s controversial foray into politics was a defining feature of 2024, highlighted by his financial support for U.S. President Donald Trump. Moreover, Musk has increasingly involved himself in European political matters, often stirring controversy and advocating for far-right causes, through his social media platform, X. This behavior appears to have alienated many European car buyers, who might now be growing weary of his influence.
Meanwhile, a survey by Electrifying.com in late January revealed that 59% of British EV owners and prospective buyers are deterred from purchasing a Tesla due to Musk’s polarizing influence. Notably, Electrifying.com CEO Ginny Buckley stated that with over 130 mainstream EV models now available in the UK, Tesla is under increasing pressure from fierce competition.
Additionally, Tesla’s declining sales in Europe can partly be attributed to its limited and aging lineup of vehicles. The company is likely counting on the updated Model Y crossover to attract more buyers to its showrooms.
European Markets Turn Cold on Tesla
In France, the second-largest EV market in the European Union, Tesla’s sales plunged 63%, while Germany saw a 59% drop. Meanwhile, Tesla’s UK sales fell by 12% during the same period. These markets represent some of Europe’s wealthiest nations and are critical to Tesla’s EV business.
Furthermore, sharp declines were also observed in Nordic regions, with sales dropping by 44% in Sweden and 38% in Norway.
Is Tesla a Good Stock to Buy Right Now?
Wall Street analysts remain neutral on Tesla stock. According to TipRanks, TSLA stock has received a Hold consensus rating, with 12 Buy, 12 Hold, and 9 Sell ratings. The average price target for Tesla shares is $338.85, suggesting a potential downside of 10.4% from the current level.
