European sales Tesla of fell by nearly 50% in April, even as overall EV sales on the continent grew, according to the company’s recent sales reports.
Elon Musk Blames Weak Market Conditions of Downfall of Tesla
However, Musk is claiming that the sudden drop in sales this time is mainly due to the weakening market conditions in Europe. During the recent Qatar Economic Forum, he flatly claimed, “The European car market is quite weak,” as quoted by Fortune.
“That’s true of all manufacturers. There’s no exceptions,” he also stated, denying to accept the fact that European consumers are shying away from his brand.
Stock Market Reaction and Global Market Factors
Even though new data revealed that Tesla’s European sales halved in April, Tesla’s stock price still rose by 2.3% in premarket trading, according to Barron. Even though China’s EV industry has begun an all-new price war, that has still not wavered Tesla’s prospects in the stock market. Moreover, Donald Trump delaying the implementation of tariffs on the EU until July could see the stock markets go for a rebound. It was previously announced that the tariff implementation would begin June 1, and now it has been stretched for another month.
Tesla Stock Performance and Future Plans
As of Tuesday, Tesla’s stock has fallen nearly 16% this year. However, on the plus side, it has risen by a whopping 43% in the April 22 earnings report, says Barron. Bolstered by this development, the Musk-owned company is moving ahead with its plan of launching a self-driving taxi service in Austin, Texas, this June. This could, investors feel, unlock a new set of earnings growth for Tesla.
