Tesla Sales Are Down; Should You Invest in June?
Tesla is losing market share in Europe as its sales fall. Can the company recover after months of losses?
Quick overview
- Tesla's sales have declined across Europe for four consecutive months, with a significant 45% drop in Great Britain in May.
- The company's struggles are attributed to a lack of new products and negative public perception linked to CEO Elon Musk's political ties.
- Despite a rise in overall electric vehicle sales, Tesla's stock has fallen 2.97% recently, raising concerns about its future performance.
- Analysts predict further declines in Tesla's stock value, making it uncertain whether investing now is advisable.
Tesla (TSLA) sales have declined all across Europe, leaving plenty of space in the market for their competitors. At the same time, Tesla’s stock price is down 2.97% for the last day.
For the markets of Italy, Germany, and Great Britain, Tesla’s sales are down for the fourth month in a row. In May, sales in Great Britain alone dropped 45%, but it is not because electric vehicle sales were dropping. In fact, EV sales rose by 28% in that region for the month of May.
Tesla is struggling for a number of reasons, one of which is that the company is facing a popularity problem. Because their CEO Elon Musk works closely with U.S. President Donald Trump, Tesla is under fire from political groups.
However, that is not the only major factor influencing the decline in sales. The company has not released a new product in years. Their last new release was the Tesla Cybertruck pickup truck back in 2023. Because they have nothing new to offer buyers, there is little excitement surrounding their company’s stock value or products.
Tesla is working on a robotaxi service that is set to release soon, opening first in a couple of cities before a large rollout happens. Tah may not be enough to make up for months of declining sales and tanking stock value, though. Tesla desperately needs some new direction and new products to offer its customers.
Should Investors Buy Tesla Now?
Tesla has proven that it can weather fierce competition and economic decline, but the company is entering new and uncharted territory at the moment. Because of all the political pushback against the company stemming from their CEO’s actions and ties, the company may have trouble recovering. With Tesla vehicles becoming politicized to the point where simply owning one is seen as a political statement, the company has lost much of their customer base.
Tesla has managed to come out of stock slumps before and has been one of the best performing stocks for years, but all that changed after Donald Trump took the presidency. Now, it is difficult to tell if Elon Musk coming back to work at Tesla will right the ship or if public opinion on Tesla will ever change.
The company is enjoying strong support from conservative groups and buyers, and if they can work with that reduced but loyal customer base, they may be able to turn their stock trajectory around.
Right now, Tesla stock is valued at $333 per share, which is down from the 2025 starting point of $411. Buying now may not make sense, however, because Tesla stock is actually high now compared to where it was in April, around $241. Analysts expect Tesla stock to fall further from here, and there is no telling if the stock may climb back up to those early 2025 levels.
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