Tesla Inc. (NASDAQ:TSLA) shares are trading lower Wednesday after the electric vehicle maker reported its fifth consecutive month of declining sales in the European market.
What To Know: Tesla's new vehicle sales fell 27.9% year-over-year in Europe last month, despite the broader electric vehicle segment growing by 27.2% in the region, according to Reuters, citing data from the European Automobile Manufacturers Association (ACEA).
The company's latest Model Y update has yet to reverse the downward trend for Tesla that started when buyers began protesting CEO Elon Musk’s political involvement.
The broader European market saw a modest 1.9% increase in overall new car sales last month, while Tesla's market share in Europe dropped to just 1.2%, compared to 1.8% in the same month last year.
Tesla's performance diverged sharply from that of its competitors. Reuters reported that legacy automakers and Chinese EV firms continued to gain ground, particularly in the lower-cost segment.
The decline highlights ongoing challenges for Tesla in Europe, including rising competition from state-backed Chinese manufacturers like SAIC, pricing pressure across the EV market and shifting consumer sentiment.
The decline in Tesla shares on Wednesday comes after shares moved higher to start the week following the company’s “successful” robotaxi launch in Austin.
Analysts had mixed reactions to the event with Wedbush's Dan Ives predicting that the rollout will accelerate as he suggested that Tesla’s autonomous arm is worth $1 trillion alone. Ives maintained an Outperform rating on Tesla with a price target of $500.
Meanwhile, UBS maintained a Sell rating following the robotaxi launch and lifted its price target to $215, while Guggenheim reiterated a Sell rating with a price target of $175.
TSLA Price Action: Tesla shares were down 4.14% at $326.40 at the time of publication Wednesday, according to Benzinga Pro.
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