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Investing.com-- Tesla’s European sales fell sharply in May, government data showed on Wednesday, even as broader car registrations in the region advanced on strong demand for electric vehicles.
Tesla’s new registrations in the European Union, the European free trade area, and the UK, fell 27.9% year-on-year to 13,863 vehicles in May, data from the European Automobile Manufacturers’ Association showed.
The decline came even as European battery and hybrid electric vehicles logged strong sales growth in May. Battery electric vehicle registrations, which is Tesla’s main and only segment, surged 27.2% y-o-y to 193,493 vehicles in May.
Strength in EV sales saw overall European car registrations rise 1.9% y-o-y to 1.1 million vehicles in May. Petrol and diesel sales continued to struggle, dropping 19.5% and 27.6% y-o-y, respectively.
Increased EV offerings from European automakers, coupled with cheaper offerings from Chinese majors such as SAIC Motor, all provided stiff competition for Tesla (NASDAQ:TSLA), which is struggling with an aging line-up of EVs.
Public opposition to CEO Elon Musk also likely contributed to the EV maker’s sales weakness in the EU, after Tesla was hit with a wave of consumer boycotts on both sides of the Atlantic over Musk’s political affiliations. Tesla’s year-to-date sales in Europe are down 37.1% y-o-y.
Musk has repeatedly touted artificial intelligence and smart driving as the next driver of growth for Tesla. The company recently tested its robotaxi service in Austin, Texas, to a positive reception from shareholders.
Tesla’s shares are trading down 10% so far in 2025, having recouped a bulk of their initial losses.