Tesla Inc. (NASDAQ:TSLA) saw a drop in new car sales in Europe even as overall vehicle sales in the region increased.
What Happened: Data released by the European Automobile Manufacturers Association (ACEA) showed that Tesla sales dropped by 28% in the region as Tesla's market share has dropped to 2% from 2.9% around the same time last year, Reuters reported on Thursday.
Sales for new BEV or Battery Electric Vehicles rose by 17.1% in the region as Electrified vehicles like BEVs, Hybrid Electric Vehicles, and Plug-In Hybrids accounted for over 59.2% of new vehicle registrations, the report said.
Elsewhere, registrations for Volkswagen AG were up 10.3% while Renault experienced a 13% surge. However, Stellantis NV (NYSE:STLA) experienced a 5.9% decline in sales. According to the data, Hybrid electric vehicles continue to dominate the region with over 35.5% of new registrations.
Why It Matters: News of the decline in sales figures comes in as Tesla experienced a 71% plunge in YoY profits. Amid this, the company said it will be releasing cheaper models at the Q1 2025 earnings call, but that could prove to do more harm than good, according to experts.
Tesla also quietly changed the marketing strategy for its Cybertruck, positioning it as a lifestyle product capable of hauling construction materials, trailers, and tackling rugged terrain. The company also unveiled a cheaper version of the Cybertruck recently.
CEO Elon Musk also reiterated his commitment to the company at the earnings call on Tuesday, which inspired confidence among investors as Tesla stock experienced a 5% surge in after-hours trading.
Despite the decline in sales, experts are confident that Tesla will continue to grow, as investment bank Piper Sandler raised the price target on Tesla stock to $400, while Dan Ives raised it to $350.
According to Benzinga Edge stock Rankings, Tesla scores well across all metrics except Value. For more such insights, sign up for Benzinga Edge today!
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