Tesla share price falls nearly 4% as European sales slump continues
Tesla share price dropped by 4% during Wednesday's trading session following a report that new car sales in Europe plummeted approximately 27.9% in May, marking the fifth consecutive monthly decline. This decline in new car sales occurred despite a 27.2% increase in fully-electric vehicle sales across the region, with the U.S. EV manufacturer's updated Model Y not yet displaying any signs of revitalizing the brand's success.
Overall vehicle sales in Europe increased by 1.9%, with the most significant growth coming from plug-in hybrids and alternatively fueled vehicles, as indicated by data from the European Automobile Manufacturers Association (ACEA).
Recent reports indicate that Tesla's sales in Europe have declined for five consecutive months, as consumers increasingly opt for more affordable Chinese electric vehicles and, in some instances, express discontent with the political views of CEO Elon Musk.
Tesla's market share in Europe fell to 1.2% in May, down from 1.8% the previous year.
The updated Model Y is designed to refresh the company's aging product lineup as traditional car manufacturers and Chinese competitors rapidly introduce electric vehicles amidst ongoing trade conflicts.
As reported, the decline in demand for Tesla vehicles has been attributed to its older model lineup, increased competition from both European and Chinese manufacturers, and consumer backlash against Musk's involvement with the Trump administration.
Musk stepped down from his position as the US government's budget reducer at the end of May and had a public dispute with Trump earlier this month regarding the president's spending legislation.
During the initial five months of 2025, Tesla's sales decreased by 45.2% compared to the same timeframe last year.
The US automaker's share of the total automobile market in Europe has dropped to 1.1% from two percent the previous year.
Tesla's decline coincides with a 26.1% increase in EV sales across Europe during the first five months of this year.
On Wednesday, Tesla share price closed at $327.55, down 3.79% on the Nasdaq.
Kapil Shah - Technical Analysis trainer - Finlearn academy and Technical analyst Emkay Global, said that Tesla share price has largely remained range-bound between $170 and $340 over the past 55 months, reflecting a broadly sideways to mildly positive trend. Recently, it found support near the $241 mark, accompanied by a bullish follow-through, signaling renewed investor interest. A breakout above the $355 resistance zone could pave the way for a further upside towards $400, offering a potential trend reversal in the medium term.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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