- Tesla saw weaker sales in Europe for the seventh month in a row, leading to a decline in its stock price.
- Key European markets showed significant drops in vehicle registrations, except Norway, which posted an increase.
- Tesla signed a $4.3 billion supply deal with South Korea’s LG Energy Solution to reduce tariff-related costs on batteries.
- CEO Elon Musk warned of upcoming “rough quarters,” raising concerns about the company’s short-term prospects.
- Analyst opinions remain mixed, with some forecasting growth, but the stock faces a wide range of possible outcomes.
Tesla’s European sales continued to fall for the seventh consecutive month, affecting the company’s stock performance. The company’s share price dropped by 4.25% for the week and has fallen 25% since the start of the year. Investors reacted to both the sales decline and broader market concerns over United States trade disputes.
Latest registration data showed that Tesla sales decreased sharply across major European markets. In July, car registrations fell by 27% in France to 1,307 units, dropped 62% in the Netherlands to 443 units, declined 52% in Denmark with 336 units, and slid 86% in Sweden to 163 units. Norway was an exception, with registrations rising 83.4% to 838 vehicles according to the Norwegian Road Federation.
Despite weak sales in Europe, Tesla secured a major contract with South Korean battery producer LG Energy Solution (LGES). The $4.3 billion deal will supply rechargeable batteries and help the company avoid high tariffs on Chinese imports. Shifting sourcing from China to South Korea reflects growing costs tied to trade wars and tariff barriers.
CEO Elon Musk recently cautioned investors that Tesla was in for a “few rough quarters”, signaling possible continued challenges this year. Some industry analysts see this dip as an investment opportunity, though Tesla stock is now trading below its 200-day moving average and in the middle of its 52-week price range, based on data from CNN. Median analyst forecasts expect a 7% gain in the next year, but warn the stock could fall as low as $115—a potential 62% loss from current levels.
Market observers will be watching closely to see how Tesla navigates tariff changes expected next quarter. Analyst views vary, but firms like Morgan Stanley and Piper Sandler maintain higher price targets, suggesting there could be room for upside. For more on Tesla’s recent performance in Norway, see the article: Amazon-tesla-norway-market-split”>Amazon Tanks 7% While Tesla Surges 83% in Norway Market Split.
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