Tesla’s (TSLA) January sales plunged 63% in France, the second biggest market in the European Union for electric vehicles (EVs).
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During January, Tesla sold only 1,141 electric vehicles within France, the fewest since August 2022, according to French industry association La Plateforme Automobile. Tesla badly underperformed the overall automotive industry and total electric vehicle sales in the country during the month, which declined 6.2% and 0.5%, respectively.
The sales decline comes as Tesla Chief Executive Officer (CEO) Elon Musk has thrown his support behind the far-right “Alternative for Germany” political party. Musk has also been accused on social media of giving a Nazi salute during an event celebrating U.S. President Donald Trump’s inauguration on Jan. 20.
The French government has said that “Elon Musk is openly attacking European regulations and values.”
Sales Down Across Europe
Overall, Tesla’s sales across Europe declined 13% in 2024, with Germany accounting for most of that decrease. Tesla’s total sales in Germany fell 41% last year, while overall electric vehicle sales declined 27% in Europe’s largest economy.
Beyond politics, Tesla has struggled in Germany due to an aging model lineup, increasing competition, and the withdrawal of government subsidies in late 2023. Tesla, and other electric vehicle makers, are also grappling with the European Union’s increasingly stringent emissions standards.
Tesla recently reported its fourth-quarter 2024 financial results and missed Wall Street’s targets across the board amid an ongoing decline in its vehicle sales worldwide. Despite its deteriorating financial position, TSLA stock has risen 123% over the past year.
Is TSLA Stock a Buy?
Tesla stock currently has a consensus Hold rating among 33 Wall Street analysts. That rating is based on 12 Buy, 12 Hold, and nine Sell recommendations made in the last three months. The average TSLA price target of $336.71 implies 10.85% downside risk from current levels.
