From Nasdaq: 2025-06-03 10:03:00

Tesla’s TSLA car sales dropped in several European countries in May, continuing a five-month decline attributed to Elon Musk’s controversies and an aging vehicle lineup. Sales fell up to 68% year over year in countries like Sweden and Portugal, while Norway saw a 213% increase due to updated Model Y SUVs.

Despite the overall decline, Tesla’s new Model Y is gaining traction in Europe, with deliveries starting this month in key markets like Germany, the UK, France, and Italy. To boost sales, Tesla is offering financial incentives and interest-free loans in select countries. However, the company faces tough competition from local and Chinese automakers.

In a surprising turn, Chinese EV maker BYD Company Limited saw a 359% surge in sales in Europe, surpassing Tesla’s sales in April. Volkswagen AG also gained market share with its subsidiaries Skoda and Audi, with the Skoda Enyaq leading as the top-selling all-electric model in Europe in April.

Tesla’s stock performance has lagged behind the industry and sector, with a decline of 15.1% year-to-date. Analysts have revised down EPS estimates for 2025 and 2026, and the company’s price/sales ratio suggests it may be overvalued compared to the industry average. Tesla currently holds a Zacks Rank #5 (Strong Sell).



Read more at Nasdaq: Tesla Losing Steam in Europe: What’s Impeding Its Growth?