Shares of EV maker Tesla (TSLA) are slightly down in today’s trading. This comes after new car registrations for its vehicles in the European Union (EU) dropped by 40.9% year-over-year in November, according to the European Automobile Manufacturers’ Association (ACEA). As a result, its market share in the EU fell from 3.6% to 2.2% during this timeframe. When including the United Kingdom and the European Free Trade Association, the drop was a little better at 28.4%. Still, market share in all three regions combined fell from 3.4% to 2.5%.
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This decline contributed to a 5.4% overall slump in battery-electric vehicle (BEV) sales across the EU, which points to a global slowdown in demand for fully electric vehicles. While fully electric vehicles are struggling, hybrid electric vehicle sales rose 19.7% year-over-year in November, and plug-in hybrids, which rely more on batteries, saw an 8% increase. Fully electric vehicles accounted for 15% of the EU car market last month, down from 16.3% in November 2023.
It is also easy to wonder how much of Tesla’s decline is attributed to the controversy caused by CEO Elon Musk after his growing involvement in politics, which includes an advisory role in President-elect Donald Trump’s administration. As a result, Volkswagen (VWAGY), Renault (RNLSY), Toyota (TM), and Volvo (VLVLY), which offer more than just EVs and have minimal involvement in politics, gained market share, with Volkswagen leading the way at 27.8%.
Is Tesla Stock a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 12 Holds, and nine Sells assigned in the past three months, as indicated by the graphic below. After a 75% rally in its share price over the past year, the average Tesla price target of $293.76 per share implies 32% downside risk.
