Falling Europe Sales Slam Tesla Stock for Another Month. Is TSLA a Buy or Sell Here?

Tesla (TSLA) is in focus on Tuesday, March 25 following news that it had yet another month of weak sales in Europe. 

According to the latest update from the European Automobile Manufacturers Association (ACEA), Tesla’s regional sales stood at 16,888 vehicles in February – down 40% on a year-over-year basis. 

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Still, there’s reason to consider buying TSLA shares at current levels. 

Consumers Still Want to Buy Tesla

Tesla stock has been in a freefall since mid-January amidst fears that billionaire Elon Musk’s ties with President Donald Trump are hurting the brand’s reputation. 

However, a recent Canaccord study suggests otherwise. About 65% of the respondents in its survey this month said they were more likely to opt for a Tesla this year than they were in 2024. 

Plus, investors could take heart in the fact that TSLA is seeing some early signs of improvement in Europe. While sales in the region were still down 40% last month, the decline was, nonetheless, better than 45% recorded in January.  

Tesla shares have gained more than 25% over the past two weeks, but they’re still down some 30% versus their year-to-date high, indicating it may not be too late to buy TSLA at a discount yet. 

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Tesla Stock Could Reclaim the $400 Level

Canaccord analyst George Gianarikas continues to rate Tesla at “Buy.” His $404 price target on the EV stock indicates potential upside of another 45% from current levels. 

However, investors should note that TSLA is scheduled to report its quarterly deliveries on April 2, which evidently will reek of weakness. So, there may be an opportunity to snap up shares of the electric vehicle behemoth at an even better price next week.   

Speaking recently with CNBC, Gene Munster of Deepwater Asset Management echoed a similar view on Tesla as well. 

“Are we at a bottom right now? I don’t think so. Do I think Tesla stock will be higher at the end of the year? The answer is yes,” he told viewers on Monday, March 24.  

What’s the Consensus Rating on TSLA Shares?

Note that the positive sentiment on TSLA stock is consistent across Wall Street. 

While analysts currently rate Tesla shares at “Hold” on average, the mean target of about $339 signals potential upside of more than 20% from here.   

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On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.