Some Analysts are optimistic about Tesla's sales prospects, believing that its sales will rebound strongly, and the launch of the revamped Model Y will serve as a catalyst to defend Tesla's market position.
$Tesla (TSLA.US)$ The sluggish sales of electric vehicles in Europe continue. According to data from the European Auto Manufacturers Association, Tesla's sales in Europe in February were 16,888 units, a year-on-year decline of 40%; in the first two months of this year, Tesla's sales in Europe plummeted 43% compared to the same period last year, which stands in stark contrast to the industry's electric vehicle sales growth of 31% year-on-year.
Market participants attribute part of Tesla's declining sales in Europe to production disruptions caused by the shift to the Model Y facelift and buyers' wait-and-see attitude. However, perhaps more importantly, the extensive political controversy triggered by Tesla CEO Musk's role in the Trump administration and his prior public support for Germany's far-right party, Alternative for Germany (AfD), have deterred potential buyers. Additionally, fierce competition from emerging electric vehicle companies in China and Europe is also one of the reasons for Tesla's declining sales in Europe.
However, some Analysts are optimistic about Tesla's sales prospects, believing that its sales will rebound strongly, and the launch of the Model Y facelift will serve as a catalyst to defend Tesla's market position.
Mayur Thaker, a stock strategist at Zacks Investment Research, stated: "The Tesla Model Y is the best-selling car globally across all categories in 2023 and 2024. Last September, Musk's political stance was already known to the public, yet Tesla's fourth-quarter deliveries still reached a historic high." "Tesla's sales are likely to make a strong rebound starting in the second quarter and continue for the remainder of this year."
Sammy Chan, the automotive sales forecast manager at GlobalData, and Felipe Munoz, a global analyst at the research platform JATO Dynamics, share the same view. However, Sammy Chan warns that it may be difficult for Tesla to replicate its sales levels in 2023, partly because more affordable electric vehicles for consumers will enter the market in 2025.
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