Tesla (TSLA) shares slipped more than 4% in pre-market trading today as investors digested a sharp sales decline in Sweden and Denmark, where registrations plunged over 60% year-over-year. The slump adds to growing concerns ahead of the company’s Q2 delivery report, which many analysts fear could reveal deeper cracks in global demand. Year-to-date, TSLA stock has dropped over 20%, even as the robotaxi debut briefly reignited investor hopes.
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Tesla Sales Tumble in Sweden and Denmark
Tesla’s sales continued their downward spiral in June, marking the sixth consecutive monthly decline in both Sweden and Denmark. In Sweden, vehicle registrations plunged 64.4% year-over-year. Meanwhile, in Denmark, Tesla posted a 61.6% drop, with sales of the revamped Model Y sliding 31.2% to just 1,155 units. On the positive side, Tesla saw a 54% year-over-year jump in car registrations in Norway in June, driven by strong demand for the Model Y.
The sales downturn isn’t limited to Scandinavia. Tesla is also seeing weakening demand in core markets like the U.S., China, and broader Europe. The persistent slump highlights the growing hurdles the EV giant faces amid rising competition and waning enthusiasm for CEO Elon Musk.
Analysts Warn of Ugly Tesla Numbers
Analysts are bracing for what could be Tesla’s steepest year-over-year quarterly decline on record. In Q2 last year, the EV maker delivered 443,956 vehicles, reflecting a modest 4.8% drop from the prior year. But expectations for this year’s performance have steadily worsened as the quarter progressed.
According to estimates from 23 analysts surveyed by Visible Alpha, Tesla is projected to deliver 394,380 vehicles for Q2. That would mark a year-over-year decline of over 11% and would follow a 13% drop already reported in the previous quarter. Going against the broader consensus, Deutsche Bank forecasts Tesla will deliver just 355,000 vehicles in Q2 2025, implying a sharp 20% year-over-year decline.
Looking ahead, analysts expect Tesla’s full-year sales to decline for a second consecutive year with the potential loss of the $7,500 federal EV tax credit looming. According to FactSet consensus, Tesla is projected to sell 1.68 million vehicles in 2025, down from 1.79 million in 2024.
Is Tesla a Good Stock to Buy?
Tesla stock remains volatile ahead of Q2 deliveries, with investors bracing for weak numbers. Meanwhile, analysts have maintained a neutral stance on Tesla stock. According to TipRanks, TSLA stock has received a Hold consensus rating, with 14 Buys, 12 Holds, and nine Sells assigned in the last three months. The average Tesla stock price target is $291.31, suggesting a potential downside of 8.3% from the current level.
