Data from the European automobile industry indicated that sales of new battery-electric cars in the EU fell by 12% in May year-over-year, with Germany’s sales plummeting by 30%. Germany, the EU’s largest EV market, ended EV subsidies early in December. According to data from the European Automobile Manufacturers Association (ACEA), Germany’s EV market has seen a 16% year-to-date decline in EV sales.
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More Details About the EU Data
Overall, new car sales in the bloc fell by 3% year-over-year in May and declined by 2.6% in the region covering the EU, Britain, and the European Free Trade Association (EFTA). However, according to a briefing by the European campaign group Transport & Environment (T&E), EV sales in the EU are expected to pick up next year when the next EU car emission targets come into effect.
Interestingly, the market share of hybrid vehicles went up year-over-year to 29.9% in May, while the market share of fully electric cars fell to 12.5%. Moreover, fully electric models, plug-in hybrids, and full hybrids made up 48.9% of all new EU passenger car registrations in May.
EU Tariffs Could Affect EV Sales in the EU
EV sales in the EU could be further impacted by the high tariffs imposed on imports of Chinese EVs announced last week. This is significant because China is the EU’s largest trading partner, exporting €10 billion worth of electric cars to the EU last year and doubling its market share to 8%, according to data from Rhodium Group.
Following the announcement of the EU tariffs, Tesla (NASDAQ:TSLA) has stated that it expects to raise the prices of its Model 3 manufactured in China when the tariffs come into effect in July. The company’s sales in the EU slumped by 34.2% in May.
Is Tesla a Buy or Sell?
When it comes to TSLA, analysts remain sidelined about the stock, with a Hold consensus rating based on 10 Buys, 14 Holds, and nine Sells. Over the past year, TSLA has declined by more than 30%, and the average TSLA price target of $176.96 implies an downside potential of 2.6% from current levels.
