Tesla Inc.’s TSLA sales in key European markets continued their downward trend in March, extending losses for a third consecutive month in multiple countries as the electric vehicle maker faces mounting challenges from Chinese competition and backlash against CEO Elon Musk‘s political activities.
What Happened: New Tesla registrations in France dropped 36.8%, Sweden fell 63.9%, and Norway slipped 1% compared to March 2024, according to official data.
Denmark and the Netherlands saw even steeper declines of 65.6% and 61%, respectively, reported Reuters. First-quarter sales were down across all these markets, with quarterly declines ranging from 12.5% in Norway to 55.3% in both Sweden and Denmark.
Musk’s increasingly visible political activities, including support for far-right parties in Europe and his close alliance with U.S. President Donald Trump, appear to be alienating potential customers.
This political stance has made Tesla vehicles and showrooms targets for vandalism, with cars burned and dealerships spray-painted in Rome, Berlin, and Stockholm in recent days.
“We’re all embarrassed,” said Luca Del Bo, president of Italy’s Tesla owners club. “We’d all be happy of course if Musk just went back to just being a CEO.”
Why It Matters: Analysts expect Tesla to announce disappointing first-quarter global deliveries on Wednesday. Deepwater Asset Management‘s Gene Munster predicts approximately 355,000 deliveries, down about 8% year-over-year and below the analyst consensus of 377,592. Prediction markets on Kalshi give just a 56% probability of Tesla exceeding 350,000 deliveries.
The company’s European market share has declined, with brands like BYD BYDDY BYDDF and other Chinese EV makers gaining ground.
Price Action: Tesla Inc. closed at $268.46 on Tuesday, gaining 3.59% for the day. In after-hours trading, the stock edged down 0.14% to $268.08. Year to date, Tesla has fallen 29.22%.
Tesla stock has outperformed rivals Nio Inc. NIO and Lucid Group Inc. LCID but trails Rivian Automotive Inc. RIVN in short- to long-term price trends, according to Benzinga Edge Stock Ranking. Sign up to learn more.
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