Latest news with #ModelY.
Mint
2 days ago
- Automotive
- Mint
Tesla share price: How can investors handle uncertainty and volatility caused by Trump tariffs, sales slump? EXPLAINED
Tesla share price: A 4% decline in Tesla shares in the overnight trade on Wall Street following a slump in European sales has brought the limelight back on the electric vehicle manufacturer's poor stock market fortune this year. While the rollout of the EV manufacturer's Robotaxi, its long-promised driverless taxi service, in Austin over the weekend has kept the stock in the green so far this week, Tesla shares are down almost 28% in the past six months and 19% year-to-date, wiping off almost $63 billion from CEO and the world's richest person — Elon Musk's wealth in 2025. The fall in Tesla's shares comes amid a multitude of factors like slowing sales amid rising competition, trade policies of US President Donald Trump, whom he helped elect, and valuation concerns around the stock. Facing the repercussions of Elon Musk's politics and rising competition from other EV giants, Tesla reported its fifth straight month of decline in new car sales in Europe to 27.9% in May from a year earlier, even as fully-electric vehicle sales in the region jumped 27.2%. With this, Tesla's European market share dropped to just 1.2% in May from 1.8% a year ago. The company's revised Model Y is also yet to show signs of reviving the brand's fortunes, as per a Reuters report. Tesla's sales in Europe have been impacted by increased competition, especially from cheaper Chinese makers such as BYD, as well as European automakers becoming more competitive, which has had a huge impact on revenue, said Ross Maxwell, Global Strategy Operations Lead, VT Markets. Its market share has eroded as consumers look to cheaper alternative models. "Now that Elon Musk has reduced his political involvements, there is hope that Tesla can turn things around in 2025 with the launch of its revamped Model Y. Early sales remain weak, though, and any turnaround will rely on if it can regain traction and compete effectively on price and performance," Maxwell added. The only vehicle Tesla has launched since the 2020 Model Y is the Cybertruck. Tesla has also cut prices on the now ageing models 3 and Y amid slowing electric-vehicle demand globally and rising competition, especially in China, where EVs start below $10,000. "Tesla's global deliveries have slowed down, especially in China and Europe, where local competition like BYD, Nio has intensified due to a business war. Demand-side uncertainty in both the US and China has led to supply chain disruptions and raised fears in investors. The company is also facing increased competition in the mid-range EV segment from global players such as Volkswagen, Hyundai, and GM," Prashant Tapse, Associate Vice President (Research), Mehta Equities, said. Speculation around potential tariffs on US auto and semiconductor exports by Musk's ally Donald Trump has also eroded confidence in the stock, especially since China plays a key role in Tesla's market and supply chain, opined Mahesh AVP Research and Business Development, Hensex Securities. While Tesla may manufacture a lot of its products in the US, it depends on other countries for auto parts, rare earth metals and batteries. Trump, a frequent EV critic, has often called for scrapping EV subsidies and policies that have added billions of dollars to Tesla's bottom line. "Tesla's ability to navigate the uncertainty and unpredictable nature of tariffs will be based on a multifaceted approach with several options open to them, targeting supply chain issues, political challenges and adapting to increased competition. Tesla could also leverage its factories internationally to try and bypass tariffs," Maxwell opined. Despite many challenges, Tesla shares continue to trade at a premium. "Over the last two years, Tesla has traded at a significant premium to legacy automakers. However, the ongoing trade war, margin pressure, and slowing growth have triggered a valuation correction," Tapse said. According to a Reuters report, Tesla shares fetch a valuation far above those of the world's biggest automotive and technology firms, judging by standard financial metrics. Its PE ratio is almost seven times that of BYD, the Chinese automaker that passed Tesla last year as the world's top EV seller. This can be attributed to most investors and analysts having bought into Elon Musk's pitch that the world's most valuable automaker isn't really a car company at all, but rather an artificial-intelligence pioneer that will soon unleash a revolution in robotaxis and humanoid robots. Telsa has been able to sustain these valuations despite reporting a 36% fall in revenue in Q1, making investors wonder if this is a stock still worth buying. A meaningful recovery in Tesla shares isn't likely right away, said Ojha, adding that much will depend on how US–China trade relations evolve, whether Tesla can improve delivery numbers in the upcoming quarters, and if the leadership narrative stabilises. Until those factors align, a strong rally may be difficult, he opined. Sharing the strategy for Tesla stock, Ojha said, "Long-term holders might stay invested, recognising Tesla's underlying strengths, but should be prepared for ongoing volatility. Those looking to enter fresh may want to wait for better clarity on trade policy and earnings momentum. In the meantime, a diversified portfolio remains essential, as Tesla's long-term story is intact but the near-term road may remain bumpy." Tapse also said that long-term investors with 3 to 5 years who believe in Tesla's AI, energy storage, and autonomous driving potential can consider holding current positions and accumulating slowly on deep dips. For the short term, one should remain on the sidelines, as Tesla will continue to remain volatile until clear clarity on the tariff war, he added. Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
The Star
2 days ago
- Automotive
- The Star
Europeans angry with Elon Musk still aren't buying his cars as Tesla sales drop for fifth month in a row
An artwork of a Tesla being crushed by a shipping container is displayed on the first day of the Glastonbury festival at Worthy Farm in the village of Pilton in Somerset, southwest England, on June 25, 2025. — AFP NEW YORK: Europeans still aren't buying Teslas with figures out June 25 showing sales plunged for a fifth month in a row in May, a blow to investors who had hoped anger toward Elon Musk would have faded by now. Tesla sales fell 28% last month in 30 European countries even as the overall market for electric vehicles expanded sharply, according to the European Automobile Manufacturers' Association. The poor showing comes after Tesla's billionaire CEO had promised a "major rebound' was coming last month, adding to a recent buying frenzy among investors. They were selling on Wednesday, pushing the prices down more than 4% in early afternoon trading. Musk had said Tesla was sure to get a boost once the company was done retooling its factories to produce a new version of its biggest seller, the Model Y. But that was finished months ago, and the new models are widely available. Investors are now hoping that a cheaper Tesla expected to be out later year will help reverse the sales decline. Overall, battery electric vehicle sales rose 25% in Europe compared to a year earlier. The market for EVs was particularly strong in Germany, where Musk has angered potential buyers by publicly supporting the far-right, anti-immigrant Alternative for Germany party in elections. Overall EV sales there leapt 45%. China's SAIC Motor was the big winner for the month with its European sales of EVs and other kinds of cars jumping 38%. That has allowed the company to leapfrog Tesla, which a year ago was selling more cars in the region. SAIC sold 18,716 vehicles last month versus Tesla's 8,729. The sales drop for Tesla comes at a crucial time for the company as it launches a test run of its driverless 'robotaxis' service in Austin, Texas. Musk says that if goes well, he expects to introduce the service in several other cities in quick succession and have as many as a million of the automated cabs on roads by the end of the year. Reviews so far have been mostly good, but the service is limited to a dozen or so cars and some passengers have circulated videos of problems during their rides, including one showing a robotaxi heading down a lane for opposing traffic. Federal traffic safety regulators said Tuesday they were looking into the videos.
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First Post
2 days ago
- Automotive
- First Post
Tesla's European sales drop for fifth straight month, unnerving investors
Data by the European Automobile Manufacturers' Association shows that Tesla sales fell by 28 per cent last month in 30 European countries, even as the overall market for electric vehicles expanded sharply read more Elon Musk's exit from the White House and his resignation from Doge have not been able to turn Tesla's fortunes in Europe, as sales slumped for the fifth month in a row in May, causing jitters among investors who had hoped anger towards the company's CEO would have gone down by now. Data by the European Automobile Manufacturers' Association shows that Tesla sales fell by 28 per cent last month in 30 European countries, even as the overall market for electric vehicles expanded sharply. STORY CONTINUES BELOW THIS AD The poor showing comes after Tesla's billionaire CEO had promised a 'major rebound' was coming last month, adding to a recent buying frenzy among investors. Musk had said Tesla was sure to get a boost once the company was done retooling its factories to produce a new version of its biggest seller, the Model Y. But that was finished months ago, and the new models are widely available. Investors are now hoping that a cheaper Tesla expected to be out later this year will help reverse the sales decline. The problem of a slump in sales is being felt by Tesla alone, as overall purchases of electric vehicles rose 25 per cent in Europe compared to a year earlier. China's SAIC Motor was the big winner for the month with its European sales of EVs and other kinds of cars jumping 38 per cent. Tesla's robotaxi The record decline in sales comes at a time when Tesla is conducting test drives of its driverless 'robotaxis' service in Austin, Texas. Musk has pinned hopes on robotaxis' success for Tesla's financial future. However, the test drives hit a snag after the flagship robotaxis encountered several issues during the trial runs, including entering the wrong lane, dropping passengers off in the middle of multiple-lane roads or at intersections, sudden braking, speeding and driving over a curb. In one instance, a robotaxi drove into a lane meant for oncoming traffic for about 6 seconds. It had pulled into an intersection in its left-turn lane with its turn blinker on. Then the steering wheel wobbled momentarily, and instead of turning, it proceeded straight into the lane meant for oncoming traffic, prompting a honk from a car behind it. STORY CONTINUES BELOW THIS AD In another incident, the car suddenly braked with no obstruction apparent in the video. The passenger jerked forward and their belongings were thrown to the floor. In a third video, taken from another vehicle, a robotaxi abruptly stopped twice in the middle of the road while passing police vehicles with flashing lights. Why have Tesla's sales dropped? Analysts attribute Tesla's struggles to growing competition from Chinese brands, EU tariffs on Chinese EVs, and consumer backlash against CEO Elon Musk's political affiliations and activism in Europe. Musk downplayed the issue, calling the European market 'quite weak,' but data shows rising EV adoption overall, suggesting Tesla is losing market share rather than the market shrinking. Tesla's Berlin Gigafactory supplies Europe but has faced production retooling delays and market headwinds, contributing to the sales slump. With inputs from agencies
2 days ago
- Automotive
Tesla sales drop in Europe for fifth month in a row
NEW YORK -- Europeans still aren't buying Teslas with figures out Wednesday showing sales plunged for a fifth month in a row in May, a blow to investors who had hoped anger toward Elon Musk would have faded by now. Tesla sales fell 28% last month in 30 European countries even as the overall market for electric vehicles expanded sharply, according to the European Automobile Manufacturers' Association. The poor showing comes after Tesla's billionaire CEO had promised a 'major rebound' was coming last month, adding to a recent buying frenzy among investors. They were selling on Wednesday, pushing the prices down more than 4% in early afternoon trading. Musk had said Tesla was sure to get a boost once the company was done retooling its factories to produce a new version of its biggest seller, the Model Y. But that was finished months ago, and the new models are widely available. Investors are now hoping that a cheaper Tesla expected to be out later year will help reverse the sales decline. Overall, battery electric vehicle sales rose 25% in Europe compared to a year earlier. The market for EVs was particularly strong in Germany, where Musk has angered potential buyers by publicly supporting the far-right, anti-immigrant Alternative for Germany party in elections. Overall EV sales there leapt 45%. China's SAIC Motor was the big winner for the month with its European sales of EVs and other kinds of cars jumping 38%. That has allowed the company to leapfrog Tesla, which a year ago was selling more cars in the region. SAIC sold 18,716 vehicles last month versus Tesla's 8,729. The sales drop for Tesla comes at a crucial time for the company as it launches a test run of its driverless 'robotaxis' service in Austin, Texas. Musk says that if goes well, he expects to introduce the service in several other cities in quick succession and have as many as a million of the automated cabs on roads by the end of the year. heading down a lane for opposing traffic. Federal traffic safety regulators said Tuesday they were looking into the videos.
The Hill
3 days ago
- Automotive
- The Hill
Europeans angry with Musk still aren't buying his cars as Tesla sales drop for fifth month in a row
NEW YORK (AP) — Europeans still aren't buying Teslas with figures out Wednesday showing sales plunged for a fifth month in a row in May, a blow to investors who had hoped anger toward Elon Musk would have faded by now. Tesla sales fell 28% last month in 30 European countries even as the overall market for electric vehicles expanded sharply, according to the European Automobile Manufacturers' Association. The poor showing comes after Tesla's billionaire CEO had promised a 'major rebound' was coming last month, adding to a recent buying frenzy among investors. They were selling on Wednesday, pushing the prices down more than 4% in early afternoon trading. Musk had said Tesla was sure to get a boost once the company was done retooling its factories to produce a new version of its biggest seller, the Model Y. But that was finished months ago, and the new models are widely available. Investors are now hoping that a cheaper Tesla expected to be out later year will help reverse the sales decline. Overall, battery electric vehicle sales rose 25% in Europe compared to a year earlier. The market for EVs was particularly strong in Germany, where Musk has angered potential buyers by publicly supporting the far-right, anti-immigrant Alternative for Germany party in elections. Overall EV sales there leapt 45%. China's SAIC Motor was the big winner for the month with its European sales of EVs and other kinds of cars jumping 38%. That has allowed the company to leapfrog Tesla, which a year ago was selling more cars in the region. SAIC sold 18,716 vehicles last month versus Tesla's 8,729. The sales drop for Tesla comes at a crucial time for the company as it launches a test run of its driverless 'robotaxis' service in Austin, Texas. Musk says that if goes well, he expects to introduce the service in several other cities in quick succession and have as many as a million of the automated cabs on roads by the end of the year. Reviews so far have been mostly good, but the service is limited to a dozen or so cars and some passengers have circulated videos of problems during their rides, including one showing a robotaxi heading down a lane for opposing traffic. Federal traffic safety regulators said Tuesday they were looking into the videos.
