Tesla’s European Sales Slump Drags TSLA Shares Down 4% Amid Growing Competition

Tesla shares fell 4% as August sales data revealed a 37% year-over-year decline in EU registrations, marking continued struggles for the EV Maker in Europe. Only 8,220 vehicles reached customers despite the company's 30% monthly stock surge prior to the report.

The European downturn contrasts sharply with Chinese rival BYD's 280% regional growth. Tesla's aging lineup, political headwinds from Elon Musk's TRUMP administration ties, and intensifying competition have contributed to a 33% annual sales drop across EFTA markets.

Analysts remain bullish on TSLA's near-term prospects regardless, with Piper Sandler raising its price target to $500 after observing Chinese market dynamics. The conflicting signals - fundamental challenges versus institutional confidence - create unusual volatility for the EV pioneer.