Tesla Stock: European Sales Plunge Amid Market Share Battle

Tesla faces significant headwinds in European markets as January 2024 sales data reveals sharp declines across key territories. The electric vehicle manufacturer experienced its most severe downturn in France, where sales plummeted by 63%, while other major markets including the Netherlands, Sweden, and Norway reported drops of 42%, 44%, and 38% respectively. The UK market, particularly crucial for Tesla's European operations, saw a 12% decrease, causing the company to slip from second to seventh position among electric vehicle brands, even as the overall EV market reached new heights.

Stock Resilience Despite Challenges

Despite these market challenges, Tesla's stock demonstrated remarkable resilience, gaining 0.8% to reach $386.80 in recent NASDAQ trading. The stock has shown impressive recovery, climbing more than 178% from its 52-week low of $138.82. Adding to positive momentum, the recent qualification of the Cybertruck for a $7,500 federal tax credit in the United States has sparked investor interest, effectively reducing the 2025 AWD model's entry price to $72,490 for eligible buyers. However, analysts maintain cautious outlooks, with average price targets suggesting potential downside risks.