Tesla’s sales in Europe plunged in the first two months of the year, according to official industry figures released on Tuesday.
Elon Musk’s EV maker sold just under 27,000 vehicles in January and February, compared with more than 46,000 during the same period last year — a 42.6% decline.
The European Automobile Manufacturers Association (ACEA) figures cover the European Union, UK, and European Free Trade Association countries of Iceland, Liechtenstein, Norway, and Switzerland.
Tesla’s slide comes despite wider EV sales rising 28.4% to more than 255,000 in Europe in January and February, accounting for 15% of the EU market. Other manufacturers posted overall rises, with Volkswagen group sales up 4.8% and the Renault group up 8.3%.
Hybrid-electric vehicles took 35.2% of the market, with the combined market share of petrol and diesel cars falling to 38.8%, down from 48.5% in the first two months of last year.
Tesla has faced backlash over Musk’s aggressive cost-cutting efforts at DOGE and his courting of far-right political parties in Europe, which have sparked protests against his EV maker, instances of vandalism, and boycott calls.
Adding to Tesla’s challenges, Chinese EV giant BYD surpassed Tesla in revenue for the first time, reporting 777 billion yuan for 2024, which equates to roughly $107 billion at current exchange rates, compared to Tesla’s $97.7 billion.
Tesla stock plunged more than 50% in the last three months, with JPMorgan analysts slashing their price target to $135 earlier this month.
However, after weeks of losses, shares have rebounded 16% since Musk’s Thursday town hall. At the meeting, he urged employees to hold the shares, citing Tesla’s robotics and robotaxi developments as key to a “future of abundance.”
While analysts have been divided on where the stock is headed, Ark Invest’s Cathie Wood shared Musk’s view at the HSBC Global Investment Summit in Hong Kong on Tuesday.
She said robotaxis will “account for 90% of the value of the company in five years” due to the relatively higher margins of self-driving software compared to EV sales.
“So we think Tesla and BYD are both in the lead from an EV point of view alone. If you layer in robotaxi, of course, BYD is not seizing the moment there, at least not yet,” Wood said.
Wood isn’t the only investor who believes Tesla sales could rise in the long run.
TD Cowen’s Itay Michaeli wrote last week that Musk’s politics might help Tesla “net meaningful sales gains over time” in Republican-oriented regions where EV adoption has typically been low.
