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Tesla (TSLA) is falling for the fourth straight trading day, sinking 8% today. The company's sales in Europe tumbled 45% in January versus the same period a year earlier, the European Automobile Manufacturers’ Association reported today.
More About the Plunge of Tesla's Europe Business
Elon Musk's automaker sold 9,945 EVs in Europe last month, compared with 18,161 vehicles in January 2024, according to the European Automobile Manufacturers’ Association. As a result, Tesla's share of the continent's market fell to 1% from 1.8%.
New European car registrations as a whole fell 2.6% year-over-year in January. Also worth noting is that TSLA launched a new version of its Model 3 in January 2024. Further, some European consumers may be waiting this year for the updated Model Y, rather than buying the current version of the vehicle. The new Model Y is slated to be launched in Europe in May.
Still, the 45% YOY slump in TSLA's European sales suggests that the fundamentals of the company's business on the continent have weakened meaningfully.
The Recent Price Action of TSLA Stock
In the last month, TSLA has sunk 24%, while it has given back 10% in the last three months and 25% so far in 2025.
While we acknowledge the potential of TSLA, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock
Disclosure: None. This article is originally published at Insider Monkey.