• Tesla’s European sales plummeted 40 percent year-over-year in February with only 16,888 units sold, lagging behind the broader EV market’s 31 percent growth.
•  Tesla’s outdated Model Y and Model 3 struggle against newer, cheaper rivals like BYD (which surpassed Tesla in global EV sales) and subsidized European automakers.
• Elon Musk’s endorsement of Germany’s far-right AfD party alienated European buyers, exacerbating sales drops in key markets like Germany.
• Tesla faces declining sales in China (-87 percent in February) and the U.S., with Goldman Sachs cutting Q1 delivery estimates to 375,000 (below Wall Street expectations).
• Cathie Wood’s bullish $2,600/share Tesla prediction hinges on unproven robotaxis and humanoid robots, while analysts remain skeptical amid falling stock prices and reduced Ark Invest holdings.

Tesla, once the undisputed king of electric vehicles, is facing a full-blown crisis in Europe. Sales have cratered for the tenth time in twelve months, with February’s numbers plunging a staggering 40 percent year-over-year.

The European Automobile Manufacturers’ Association (ACEA) reports just 16,888 Teslas sold last month – a devastating collapse even as the broader EV market surges by 31 percent. This isn’t just a bad quarter; it’s a trend. The reasons for this collapse are clear: An aging lineup, brutal competition and Tesla CEO Elon Musk’s increasingly polarizing political crusade against the radical leftists running Brussels into the ground.

Europe’s auto market is in trouble, with overall sales down 3.1 percent as consumers tighten their belts. Nevertheless, Tesla’s decline is far worse—a 40 percent freefall while rivals gain ground. Even in China, Tesla’s sales (excluding exports) crashed 87 percent in February, hitting their lowest point since 2022.

Goldman Sachs analysts have slashed their first-quarter delivery estimates, citing weak demand in Europe, China and even the United States. They now expect just 375,000 deliveries, down from an earlier forecast of 399,000—well below Wall Street’s expectations.

While Musk has never been shy about his political views, his recent endorsement of the Alternative for Germany (AfD) party may have crossed a line with European buyers. AfD, a nationalist party surging in popularity as Germans revolt against open borders and economic decline, was praised by Musk as the “best hope for the future” of Germany. U.S. Vice President JD Vance echoed that support during the election campaign.

But in Europe’s corporate-media-dominated landscape, such statements are heresy. Tesla’s sales cratered hardest in Germany, where AfD’s rise has triggered panic among the political establishment. The backlash suggests that European elites would rather punish a disruptive American innovator than tolerate dissent from their failing policies.

While Tesla stumbles, China’s BYD is eating its lunch. BYD overtook Tesla in global EV sales last year, posting $107 billion in revenue – $10 billion more than Tesla. European automakers, backed by heavy subsidies, are also rolling out cheaper, newer models – leaving Tesla’s aging Model Y and Model 3 looking stale.

Even in the U.S., Tesla faces headwinds. The Cybertruck has been a niche product at best and the Model 3 refresh hasn’t reignited demand as hoped. Meanwhile, U.S. President Donald Trump’s administration has slashed federal subsidies, cutting off another lifeline for Tesla’s growth.

Lone voice remains optimistic for Tesla

Amid the wreckage, one voice remains stubbornly optimistic: Cathie Wood, CEO of Ark Invest. Despite Tesla’s stock collapsing 31 percent this year, Wood insists the company is headed for $2,600 per share – a tenfold increase – within five years.

Her argument? Robotaxis.

Wood claims Tesla’s future lies not in selling cars but in autonomous taxis, which she believes will generate 90 percent of Tesla’s value. She’s also betting on Musk’s humanoid robots, a moonshot project with zero commercial viability today. (Related: Tesla moves a step closer toward its goal of operating a fleet of autonomous robotaxis in California.)

It’s a bold prediction, but analysts aren’t buying it. UBS and Evercore ISI have already cut delivery forecasts, warning that Tesla’s growth story is faltering. Even Ark Invest has reduced its Tesla holdings by 16 percent since December, hardly a vote of confidence.

Wood’s robotaxi dreams may keep the faithful hopeful, but the numbers don’t lie: Tesla is losing ground. Unless Musk can reinvigorate demand with real innovation – not just hype – the EV pioneer risks becoming just another casualty of Europe’s economic decline and China’s relentless rise.

Visit RoboCars.news for more similar stories.

Watch this video of Elon Musk discussing his future projects – autonomous taxis and a humanoid robot.

This video is from the Thrivetime Show channel on Brighteon.com.

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Sources include: 

SHTFPlan.com

OilPrice.com

LiveMint.com

Brighteon.com