U.S.-based EV maker Tesla (TSLA) has faced a setback in Sweden and Norway as CEO Elon Musk’s local reputation in the region suffers from his repeated controversial comments on European affairs along with his outspoken support for U.S. President Donald Trump. Meanwhile, Tesla’s market share in Sweden dropped to 2.1% in January, down from 4.2% a year earlier, while in Norway, it fell to 7.4% from 21.7%.
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Is Musk’s Influence Hurting Tesla in Nordic Markets?
According to the car registrations data, Tesla’s registrations plunged 44% year-over-year in Sweden to 405 cars in January. Similarly, Norway saw a 38% drop to 689 car registrations. The decline occurred despite a surge in overall car demand, with both countries experiencing an increase in total auto registrations.
Interestingly, a market sentiment survey by Sweden’s Novus Group revealed a growing wave of negative feedback towards the Tesla brand. Since Trump’s presidency, the percentage of Swedes with a positive opinion of Tesla has fallen to just 11%.
Earlier this month, Norway’s Prime Minister Jonas Gahr Stoere also expressed concern about Musk’s involvement in the political matters of countries beyond the U.S. Stoere stated that if Musk were to get involved in Norwegian politics, the country’s politicians should unite in distancing themselves from his actions. On the other hand, Musk has brushed off criticism against him, calling it an attack on democracy and free speech.
Overall, Tesla has faced struggles in Europe, with January sales dropping 63% in France, the EU’s (European Union) second-largest EV market.
What Is the Price Target for Tesla Stock?
On Wall Street, analysts have maintained a neutral stance on TSLA stock. According to TipRanks, TSLA holds 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 11.7% from current levels.
In the last 12 months, TSLA shares have surged by over 110%.
