Tesla’s shares experienced a 6.4% decline on Wednesday, bringing the price to $272.06 per share. This drop was fueled by recent European sales data and looming concerns over President Donald Trump’s proposed tariffs.
The European Automobile Manufacturers’ Association (ACEA) highlighted on Tuesday that Tesla’s new vehicle registrations in Europe fell by 40% in February compared to the previous year, contrasting with a 26% rise in overall battery electric vehicle sales.
In tandem, the White House declared on Wednesday that President Trump was set to announce new tariffs on auto imports that very afternoon. April 2 has been touted by the president as “liberation day” and dubbed “the big one” for unveiling his substantial tariff plans against foreign trading counterparts. However, Trump indicated this week that tariffs on autos might be enacted sooner than expected.
RBC analysts, responding to the ACEA’s Tuesday report, remarked that the February figures only reflected around 11,000 fewer Tesla vehicle registrations in Europe. They cautioned that the monthly data “may not accurately reflect actual demand.” To date this year, Tesla’s European sales have dropped by 42.6%.
In February, Tesla held a 1.8% share of the total market and captured 10.3% of the battery electric vehicle market, a decrease from last year’s 2.8% and 21.6%, respectively.
