Electric vehicle (EV) giant Tesla’s (TSLA) sales in UK jumped by 20.7% in February despite CEO Elon Musk’s seemingly deteriorating brand value. Tesla sold 3,852 autos in the UK last month, aided by a solid demand for its Model 3 and Model Y EVs. According to The Society of Motor Manufacturers and Traders (SMMT) data for February, Tesla’s Model 3 and Model Y were the second and the third most bought cars in the UK, following The Mini Cooper.
All Is Well for Tesla in the UK
The jump in demand for Tesla’s EVs boosted its UK market share to 4.6% from 3.75% reported in February 2023. Tesla sold 1,990 autos of Model 3 and 1,861 Model Y vehicles in the UK. Overall, there was a 41.7% increase in EV registrations in the UK last month. Notably, EVs accounted for nearly 25% of all new registrations as consumers rush to buy their EVs before new taxes set-in in April.
The favorable numbers in Britain have defied fears about the negative impact on Tesla’s sales from growing backlash for the CEO. Musk’s growing intervention in the European political drama has severely impacted Tesla’s sales in the EU bloc.
Musk’s Political Inclinations are Driving Buyers Away
Investors are reacting negatively to Musk’s political inclinations. Tesla’s market value has slumped drastically, since President Trump’s win in mid-December and Musk’s growing association with him. Additionally, his support for Germany’s far-right party has also drawn severe criticism for the billionaire in the country, resulting in a massive 76% drop in sales.
Tesla is also facing a steep decline in sales in China, one of its biggest markets, owing to intense competition from domestic companies such as BYD (BYDDF). In February, Tesla’s China sales plunged by 49% year-over-year to reach 30,688 EVs, marking its lowest sales since August 2022.
Is Tesla Stock a Buy?
Wall Street remains highly cautious about Tesla’s stock trajectory owing to the declining company-wide sales and the growing backlash against Musk. On TipRanks, TSLA stock has a Hold consensus rating based on 14 Buys, 11 Holds, and 10 Sell ratings. Also, the average Tesla price target of $351.48 implies 33.4% upside potential from current levels. In the past year, TSLA stock has gained 47.5%.
