Musk promised Tesla would return to growth this year after its annual deliveries fell for the first time in 2024, and Wall Street will be watching to see how a refreshed Model Y SUV and incentives made a difference.
Tesla has been grappling with rising global competition and mass protests against Musk’s role overseeing cuts to federal spending as an adviser to US President Donald Trump.
Speaking on RTHK’s Hong Kong Today programme, RTHK’s San Francisco correspondent Mark Niu said the backlash against Musk was taking affecting Tesla’s business.
“It’s certainly has taken a toll on Tesla’s stock [price] which rose sharply when Donald Trump won the election with Musk being his biggest financial backer. It hit a record of US$480 and today it’s around US$259 … with regard to sales one thing is quite clear: sales of new Tesla cars have slumped in Europe.”
The company has been offering discounts and other incentives, including low-cost financing, but these seemed to have had little impact in Europe, where sales declined in the first two months of the year.
Sales of China-made Teslas fell as well. Chinese rivals including BYD have ramped up a price war and launched at least six models in the past year to take on the Model Y. (Reuters)
