Tesla Inc. (NASDAQ:TSLA) shares are trading lower Monday after industry data showed a drop in new car sales in Spain, which appears to be adding to concerns over European performance.
What To Know: New registration data from Spanish industry group ANFAC showed that Tesla sold 571 units in the country in April, down 36% on a year-over-year basis.
Furthermore, sales over the first four months of the year declined 17% compared to the same period in 2024, while the broader electric vehicle category saw sales surge 54%, suggesting Tesla is not keeping pace with broader EV growth in the region.
Meanwhile, Chinese competitors such as BYD, MG and Omoda have posted triple-digit percentage gains in the Spanish market so far this year, highlighting a shift in consumer preference. Tesla's share of the European market has reportedly slipped from 2.9% to 2% in just one year, compounding concerns for investors.
The broader sales declines comes amid CEO Elon Musk's polarizing political activity, which has led to public protests across Europe and vandalism targeting Tesla vehicles and infrastructure. Analysts have raised concerns over weakening brand strength on the back of Musk’s political involvement.
Musk has said in recent weeks that he plans to scale back direct involvement with the Department of Government Efficiency (DOGE) to refocus on Tesla, which reported weak financial results last month.
Total revenue fell 9% year-over-year in the first quarter as automotive revenue dropped 20% to $13.97 billion due to a decline in deliveries, Model Y updates and lower average selling prices. Tesla said it delivered 336,681 vehicles in the quarter, well below analyst estimates of 377,592 vehicles.
Despite a strong rebound in Tesla's stock last month, where it gained over 23%, shares remain down more than 30% year-to-date. Reports surfaced last week suggesting that Tesla’s board was considering a replacement for Musk. Tesla quickly responded, calling the reports “absolutely false.”
“The CEO of Tesla is Elon Musk and the Board is highly confident in his ability to continue executing on the exciting growth plan ahead,” Tesla chairwoman Robyn Denholm said.
TSLA Price Action: Tesla shares were down 2.45% at $280.16 at the time of writing, according to Benzinga Pro.
Read Next:
- Stock Of The Day: Does This Classic Pattern Suggest A Move Higher In Tesla?
Image via Shutterstock.
