Tesla stock is under the pump on Wednesday as the EV major’s sales in Europe continue to disappoint investors.
At the time of writing, the TSLA stock is down around 5% to trade at $323.
The EV company’s stock has remained under pressure for the better part of this year.
On a year-to-date basis, the stock is down around 15%.
Tesla shares have experienced significant volatility in 2025.
The stock surged from approximately $250 to $480 in the aftermath of the US presidential election, driven by investor optimism over a second Trump term and expectations of favourable policy outcomes due to CEO Elon Musk’s perceived alignment with the administration.
However, the rally lost momentum as weak first-quarter delivery numbers raised concerns about demand and execution.
Tesla sales in Europe continue to decline
Tesla’s new car sales in Europe declined for a fifth consecutive month in May, highlighting intensifying competition from Chinese electric vehicle makers.
According to data released Wednesday by the European Automobile Manufacturers Association (ACEA), Tesla sold 13,863 units across the European Union, the UK, and the European Free Trade Association—a 27.9% drop compared to the same month last year.
The company’s regional market share also shrank, falling to 1.2% from 1.8% in May 2024.
Meanwhile, Chinese automakers continued to gain ground despite the European Union’s recent tariffs on EV imports from China.
According to JATO Dynamics, Chinese manufacturers sold 65,808 vehicles in the region last month, more than doubling their market share to 5.9%.
The data underscores a broader shift in consumer preferences toward lower-cost EVs, putting additional pressure on Tesla’s pricing power and market position in Europe.
Tesla robotaxis draw scrutiny
The US National Highway Traffic Safety Administration (NHTSA) is seeking information from Tesla following the emergence of videos showing the company’s self-driving Robotaxis violating traffic laws during their debut in Austin, Texas.
The clips, widely shared online, depict the vehicles exceeding speed limits and drifting into incorrect lanes.
These incidents occurred shortly after Tesla’s heavily publicized launch of the limited Robotaxi service over the weekend, which featured rides by pro-Tesla influencers intended to showcase the technology.
Instead of generating favorable attention, the footage appears to have prompted regulatory scrutiny.
In a statement, NHTSA confirmed its awareness of the incidents and said it is “in contact with the manufacturer to gather additional information.”
The inquiry adds to Tesla’s growing regulatory challenges as it pushes forward with autonomous vehicle technology under increasing public and governmental oversight.
Tesla’s Robotaxi debut over the weekend involved over 10 vehicles operating within a designated zone in Austin, Texas, with “safety drivers” seated in the front passenger seat.
CEO Elon Musk hailed the launch as a major milestone, claiming it would usher in a new era of safer driving.
However, footage shared by several influencers invited to test the service painted a more mixed picture.
Some videos showed the autonomous vehicles exhibiting erratic behavior—glitching, veering, or exceeding speed limits—raising fresh concerns about Tesla’s self-driving technology.
The high-profile launch, intended as a showcase of Tesla’s Full Self-Driving (FSD) progress, now faces growing scrutiny amid questions about road safety and regulatory compliance.
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