Tesla’s (TSLA) sales in Germany plummeted 59% in January after only 1,277 new cars were registered, the lowest monthly total since July 2021. This decline comes amid concerns that CEO Elon Musk’s political activities are hurting the company’s business in major electric vehicle markets. A recent poll found that Musk’s interventions in German politics were viewed unfavorably, which may have contributed to the sales drop.
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It is also worth noting that Tesla’s struggles in Germany are part of a broader decline in Europe’s largest EV markets. The company’s sales also fell in France (63%) and the UK (12%) last month. Musk’s endorsement of Germany’s far-right Alternative for Germany party and his comments on the country’s culture and history have led to outrage that may have damaged the company’s reputation.
However, other factors may have contributed to Tesla’s slow start to the year. This includes a production overhaul to manufacture a redesigned Model Y and potential inventory shortages in some markets. In addition, the company’s all-out push to boost sales late last year may have led to a shortage of vehicles in some regions. Despite these challenges, Tesla is working to improve its production and regain some momentum in the competitive EV market.
Is Tesla a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 12 Buys, 12 Holds, and nine Sells assigned in the past three months, as indicated by the graphic below. After a 112% rally in its share price over the past year, the average TSLA price target of $338.85 per share implies 10.8% downside risk.
