Tesla shares rebound as Musk pledges renewed focus after sharp April sales plunge in Europe
Tesla’s European sales fell 49 percent year over year in April, with just 7,261 vehicles sold, as reported by the European Automobile Manufacturers’ Association (ACEA).
The company’s performance sharply contrasted with a 34.1 percent increase in overall battery electric vehicle sales across the region during the same period.
According to CNBC, the sharp decline in sales is being linked to Tesla CEO Elon Musk’s controversial political activities, which have drawn public backlash across Europe.
Musk formally endorsed Germany’s far-right AfD party earlier this year and clashed with labour groups in Scandinavia.
Protests erupted at Tesla showrooms in response to these developments, and reputational concerns have weighed on the brand.
The company’s troubles extended beyond April.
Tesla sales dropped nearly 40 percent over the January–April period.
Despite launching an upgraded Model Y SUV earlier this year, the company has not unveiled any new mass-market vehicles, leaving its overall lineup ageing in an increasingly competitive market.
At the same time, Tesla is losing market share to rivals.
CNBC noted that Chinese automaker BYD outsold Tesla in battery-only electric vehicles in Europe for the first time last week.
The ACEA also reported that hybrid electric vehicles now account for just over 35 percent of Europe’s car market — a segment in which Tesla currently has no offerings.
Investors have expressed concern over Musk’s divided focus.
Musk devoted nearly US$300m to support US President Donald Trump’s re-election and helped lead the Department of Government Efficiency (DOGE).
In response to mounting pressure, Musk said during Tesla’s April earnings call that his time spent on DOGE would be “significantly” reduced by the end of May.
He added that he would still commit “a day or two per week” to that role but pledged to remain CEO of Tesla for the next five years.
Signs of investor optimism re-emerged on Tuesday, with Tesla shares gaining nearly 7 percent.
Musk posted on social media platform X — which he owns — that he plans to be “super focused” on Tesla, xAI, and X following recent outages and “uptime issues.”
He pledged to return to “spending 24/7” at work and acknowledged the need for “major operational improvements.”
The rebound in share price coincided with broader gains in equity markets.
As reported by Reuters, US stocks rose after President Trump delayed a proposed 50 percent tariff on European Union imports until July 9, giving markets a temporary reprieve.
The Nasdaq jumped 2.47 percent, led by tech stocks, while the S&P 500 gained 2.05 percent and the Dow Jones climbed 1.78 percent.
According to Reuters, a 14.4 percent increase in consumer confidence also helped offset concerns about a decline in core capital goods orders.
Analysts said the delay in tariffs and stronger consumer sentiment contributed to the rally, though uncertainty remains as markets await the full impact of Trump’s trade policies and the upcoming release of the Federal Reserve’s meeting minutes.
