Tesla shares slid 1.6% in morning trading. Tesla’s sales slumped in the European Union in May, falling 34.2%, as part of a sharp drop in demand for new battery-electric cars in the region. Moreover, RBC adjusted price target on Tesla to $227 From $293.
Demand for EVs in Europe has cooled in recent months, after rising strongly for several years, while competition to produce more affordable models has grown.
To shield domestic automakers from an influx of cheap EV imports, the European Commission said last week it would impose provisional duties of up to 38.1% on China-made EVs starting July.
This prompted Tesla, a U.S. electric carmaker, to state that it was likely to increase the price of its China-made Model 3 when the EU measures come into effect.
Total EV sales in the European Union dropped 12% in May from a year earlier, data from the European Automobile Manufacturers Association showed on Thursday.
This drop was led by a sharp 30% reduction in Germany, the bloc's largest electric vehicle market, after the country ended late last year subsidies for buying EVs.