Tesla's recent struggles in the European market are significantly impacting its stock performance. As of December 20, 2024, Tesla has experienced a substantial decline in vehicle registrations across the European Union, with a 40.9% drop in November compared to the same month last year. This decline is part of a broader trend, with year-to-date registrations down 15.2% in the EU. The reduction in government incentives for electric vehicles in several European countries has compounded these challenges, alongside the controversial public image of Tesla's CEO, Elon Musk. Despite Tesla's continued dominance as the largest EV manufacturer in Europe and the U.S., its market share is shrinking, with other automakers stepping in to fill the void.
In addition to the registration woes, Tesla is preparing for a facelift of its Model Y, set to begin production in January 2025 at the Shanghai Gigafactory. This update, codenamed "Juniper," is anticipated to include design and performance enhancements, such as slimmer headlights and increased range. However, the current Model Y is losing its competitive edge, no longer ranking among the top ten most economical electric cars. The anticipation of the new model may be causing potential buyers to delay purchases, further affecting Tesla's current sales figures.
The Graniteshares 2x Long TSLA Daily ETF (TSLR) is down 9.76% in pre-market hours on Friday, December 20, falling to $46.25 as of 6:15 AM ET.