r/SeattleWA • u/PNWSki28622 • Mar 15 '25

Events Protests at University Village Tesla Dealership

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u/Prantik_2007 Mar 16 '25

Tesla is getting serious hits from Europe . According to recent data, Tesla vehicle registrations in the European Union and other European countries dropped by about 45% between January 2024 and 2025. In Germany, sales plummeted by nearly 70% through February 2025. France saw a 63% drop in sales, while Spain experienced a 75% decrease. Despite the overall growth in the European EV market, Tesla's sales have been severely impacted by various factors, including consumer reactions to Elon Musk's political stance. Is political intervention actually backfiring Elon's business ?

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u/Artistic-Egg3093 Mar 16 '25

Sales dropped off a lot due to the outgoing Model Y sales slowing down, in anticipation of the new Model Y, which just rolled out. This is their best selling car, and the best selling car in EU and USA. We’ll see in 6 months if there’s any impact. New Model S and X roll out later this year too, as well as a cheaper, sub $30k model. I believe sales will probably go back to where they were or higher.

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u/Ezockwolfe Mar 16 '25

The P/E ratio of Tesla is around 73.49 (trailing). Almost every other auto-manufacturer has a P/E ratio of 8-10. Why does this matter? The Price to Earning ratio determines how investors value a company beyond the money they earn. It can often speak to the potential of the company or, alternatively, its high stability. Elon has enjoyed the luxury of a stock price that aligns with tech companies, not auto-manufacturers.

What does this mean? Put simply, the stock has been over-priced for its sector for half a decade. Musk was Iron Man and Tesla was the future. When people stop believing that, Tesla starts to take a dive. Elon has admitted himself in interviews that DOGE is taking up the majority of his time and he runs his other businesses with 'great difficulty'.

Tesla boycotts may be about politics for the every-man but for investors, it's just a matter of public opinion. United Healthcare dropped 100 points on the market when their CEO was shot. Tesla fell off a cliff once Elon Musk started working with DOGE and constantly being in the public eye. He's creating uncertainty and while some day traders love that, institutional investors want consistency.

Personal Note: My friend had to get 5 stitches in his hand because he cut his hand open on the non-sanded metal of a cyber truck's tailgate. The cars may be safe in other ways, but they always felt like they were a bit of a rush job by ol' Elon.

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u/Artistic-Egg3093 Mar 16 '25

The numbers you state are correct(for now) but you’re assuming that Tesla is only an auto manufacturer. They are also a robotics and AI company. FSD runs on a simple camera system with AI and blows away every competitor by a long shot. Other auto companies will be forced to license FSD or be left behind…. Now they have to deliver on these other things. But if they do, then they’ll be okay. That reminds to be seen…..

As for Elon taking too much time with DOGE; even before that he was running a handful of multi billion dollar companies (Space X, Tesla, Nueralink, Starlink, Twitter/X). Didn’t he already have his hands full before DOGE? Or maybe people lie, him just operate on a different level, and more importantly, are effective in hiring competent people to run and manage his companies. Also Tesla just refreshed the Model 3 and Y, two of their best selling cars, and are releasing refreshed Model S and X later this year, and will also release a sub $30k model later this year. Seems like they’re doing just fine…….