Tesla: registrations in Europe cause concern

(CercleFinance.com) - Tesla saw its car sales and market share fall sharply in Europe in January, sending its share price down more than 8% on Tuesday morning on Wall Street.


New car registrations for the US electric vehicle manufacturer fell by 45.2% last month on the European market, according to figures from the European Automobile Manufacturers' Association (Acea).

As a result, Elon Musk's group claimed just a 1% market share in January, compared with 1.8% a year earlier, making it the third-lowest-selling independent carmaker on the Old Continent, ahead of Honda and Mitsubishi.

These poor figures are to be seen in the context of the many controversial positions taken by the American billionaire and the confusion surrounding his role as a businessman and his appointment to the Trump administration, where he heads the Department of Government Efficiency (DOGE).

Wall Street's fear is that Musk is devoting far too much time (...) to the DOGE project, which could distance him from Tesla at a crucial time and year for the group, Dan Ives, analyst at Wedbush Securities said.

The battle for autonomous driving and robotics is in full swing between the USA and China, and many investors fear that the fact that he is devoting '100% of his time' to DOGE will create an unfavorable perception around his focus on Tesla', he adds.

Tesla shares, which had surged by more than 90% in the six weeks following Donald Trump's victory, were down by more than 8% just under an hour after opening on Wall Street.

The stock has now fallen by over 18% since the start of the year.


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