Tesla’s (TSLA) dismal performance at the start of the year showed no signs of turning course in Europe as figures released Wednesday showed a huge drop in sales in Germany last month, just as CEO Elon Musk weighed into the country’s Federal election and focused his attention on Donald Trump and cutting U.S. government spending.
Further underlining the company’s declining market share, its sales in Germany fell by more than three quarters in February, according to the German road traffic agency KBA, while overall electric vehicles sales rose. Tesla sold 1,429 cars in Germany last month, a decline of 76%, while sales of electric vehicles overall in the country rose 30.8% to 35,949.
European Sales are Torched
Data earlier this week showed Tesla suffered a massive decline in sales across France and Scandinavia last month, as Musk appeared to put European consumers off with his politics. Registrations dropped between 42% and 48% across Sweden, Norway, and Denmark, while its French sales declined 26%.
It means Tesla’s sales in the first two months of the year are down 71% in Germany and 44% in France, notably the two largest EV markets in the EU.
Politics Hit TSLA Sales
Musk is a close ally of President Trump, whose administration has in recent weeks been aiming barbs at the European Union on a range of topics, threatened the bloc with sweeping tariffs, and upended assumptions about American backing for Ukraine and the NATO alliance, culminating this week in the White House pausing military aid to the country in its fight with Russia.
Meanwhile, Musk pointedly showed support for right-wing parties in Europe, including for Germany’s anti-immigrant AfD during last month’s national elections in which the party emerged in second place with around a fifth of the vote. Conservative Chancellor-in-waiting Friedrich Merz has said he will keep the party out of any government.
Tesla’s sales across Europe almost halved in January and the data so far suggests February could be even worse. Sales across the European union, the European Free Trade Association and the UK slid 45.2% 9,945 at the start of the year, according to data from the European Automobile Manufacturers’ Association.
Meanwhile figures yesterday showed Tesla’s China-made EV sales plummeted 49% year-over-year in February.
Is TSLA Stock a Buy?
Turning to Wall Street, TSLA stock has a Hold consensus rating based on 13 Buys, 12 Holds, and 10 Sells assigned in the last three months. At $346.72, the average Tesla price target implies about 27% upside potential.
