Tesla’s (NASDAQ: TSLA) presence in the European market is facing significant challenges, with recent reports indicating a sharp decline in vehicle sales across the continent.
Despite the introduction of the new Model Y, the company has not been able to reverse the downward trend in several key markets. In March 2025, sales figures revealed a 37% drop in France, a 61% decrease in the Netherlands, and a staggering 64% decline in Sweden compared to the same month last year. Austria also reported a downturn in deliveries.
The only silver lining came from Portugal, where a slight increase in sales was observed. Analysts suggest that the decline is partly due to the brand’s recent struggles and the transition associated with the new Model Y launch.
Folksam Divest Tesla Stake Worth $160 Million
In another blow to Tesla, Swedish insurance giant Folksam announced its decision to divest its $160 million stake in the company.
This move was driven by Tesla’s refusal to engage in collective bargaining with Swedish mechanics, highlighting ongoing concerns about the company’s labor practices in the Nordic region. Folksam’s decision underscores a broader apprehension regarding Tesla’s approach to workers’ rights, which may have long-term implications for its reputation and operations in Europe. The divestment reflects a growing trend among investors who prioritize ethical considerations alongside financial performance.
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Tesla Stock: An Opportunity for Retail Traders?
Tesla’s stock has shown variability in recent trading sessions, reflecting the company’s current challenges. Recent closing prices have fluctuated, with a notable drop from $273.13 on March 27, 2025, to $259.16 on March 31, 2025. Despite these fluctuations, the stock’s current valuation remains significantly below its 52-week high of $488.54, indicating potential volatility in the market.
Tesla’s financial metrics paint a complex picture of its market position. With a market capitalization of $863.51 billion, the company remains a formidable player in the automotive industry. However, its trailing price-to-earnings ratio of 131.59 and forward price-to-earnings ratio of 82.85 suggest high expectations for future growth.
The stock’s beta of 2.507 indicates a higher level of risk compared to the broader market. Analysts have set a target mean price of $329.91, with a recommendation to hold, reflecting cautious optimism about Tesla’s future performance amid current challenges.
For investors, Tesla’s situation presents a mix of opportunities and risks.
The company’s high market cap and ambitious price targets suggest potential for substantial returns. However, the recent sales decline in Europe and labor-related controversies could impact investor confidence. The stock’s recommendation mean of 2.61702 suggests a moderate stance, advising investors to carefully weigh the company’s growth potential against the backdrop of ongoing challenges.
Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.
About the author
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.