Bad Sales News for Tesla as Stock Takes a Dive
Declining sales in Germany are making things tough for Tesla shareholders, even as significant competition comes out of China.
Quick overview
- Tesla (TSLA) stock initially fell over 3% but recovered to a 1.75% loss amid reports of declining global sales.
- In Germany, Tesla registered only 885 vehicles in April, a significant drop compared to the previous year.
- The company faces increasing competition from Chinese automaker BYD, which registered 1,556 vehicles in Germany during the same period.
- Tesla's sales have decreased by 60% in Germany over recent months, attributed to political backlash against CEO Elon Musk and strong competition.
Tesla (TSLA) stock fell more than 3% in early trading on Tuesday but bounced back to just 1.75% loss from the previous day by the afternoon. The stock is being hindered by news of poor sales around the world.
Germany registered only 885 Tesla vehicles in April, which is about half of what was registered at that same time in 2024. Tesla stock is sitting at $276.19, however, which is up from $171 at the same time last year.
Tesla is facing strong competition from China, as the BYD company saw 1,556 of their vehicles registered in Germany for April. Electric vehicles are not the problem for Tesla. These vehicles are becoming more popular, with an increase of 53.5% EV registrations for this year compared to last year. In Germany, electric vehicles account for about 19% of the market.
Why Tesla Sales Are Down
Around the world, Tesla sales are dropping. There are multiple reasons for this, and the most notable are that political anger is aimed at Tesla CEO Elon Musk and strong competition for Tesla is coming out of China. In Germany in particular Musk is very unpopular, as he has backed the Alternative for Germany political party.
Tesla sales have been dropping in Germany for the past few months while its competitors continue to perform well. In those months, Tesla sales have fallen a total of 60%, and this problem does not look like it will go away soon.
While there have been rumors that Musk will be replaced as CEO, Tesla has denied those rumors and continues to throw their support behind their embattled head. Meanwhile, Musk may be stepping back from at least some of his duties as the head of DOGE (Department of Government Efficiency) and spending more time focusing on Tesla and his other business ventures.
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