

Investor's Corner
Tesla Model S, X softer sales in Europe are NOT due to the Audi e-tron and Jaguar I-PACE
In a note to clients on Wednesday, Bernstein senior technology analyst Toni Sacconaghi concluded that increased competition from vehicles such as the Audi e-tron and the Jaguar I-PACE is responsible for the recent weakness in Tesla’s sales volume in Europe. The analyst further warned that the arrival of other premium electric vehicles like the Mercedes-Benz EQC and the Porsche Taycan could worsen Tesla’s problem.
Explaining further, the Bernstein analyst added that the total market for Europe’s premium electric cars has only grown modestly in 2018 and 2019, and over this time, Tesla’s sales volume has decreased. “Our analysis suggests that the deteriorating sales trajectory of the Model S and X may be primarily due to competition, particularly in Europe, from Jaguar and Audi. In other words, the market isn’t growing much, and Tesla is losing share,” Sacconaghi wrote.
According to TSLA investor @Incentives101, an economist with a background in macro research, Bernstein’s conclusions are inaccurate. In a message to Teslarati, the economist provided a deep dive into the likely causes of the Model S and X’s sales decline in Europe, as well as the reasons why vehicles such as the Jaguar I-PACE and the Audi e-tron are in no way responsible for the reduced market share of Tesla’s flagship sedan and SUV.
Model S and X sales decline
It should be noted that Europe is a region, which means that it is comprised of multiple countries, each with a population of consumers that usually have different preferences in vehicle purchases. Looking at past vehicle sales data, the economist noted that from January-June 2018, Tesla sold 13,426 Model S and X in Europe, while in the first six months of 2019, the figure was 8,037.
“In those months of 2018, Norway and the Netherlands accounted for 52% of sales, while in 2019 it was just 28%. This means that 87% of the drop in sales of Model S and X in Europe is explained by the Norwegian and Dutch market. Furthermore, the Netherlands had Model S and X sales for the first six months of 2018 of 2,833 units and 167 for 2019. This means that the Netherlands by itself explains 50% of the drop in sales for Tesla’s flagship vehicles,” the investor wrote.
The Netherlands and Norway
If one were to look at the sales of the Audi e-tron and the Jaguar I-PACE in the Netherlands for the first half of 2019, one would find that the two vehicles only sold 362 and 111 units, respectively. This means that in the Netherlands, which was behind 50% of the drop in Tesla’s European sales, the e-tron and I-PACE couldn’t have been responsible since their combined sales are only 16% of the Model S and X’s 2018 sales for the same period. With this in mind, some headwinds were met by the Model S and X in the Netherlands, particularly in the form of a change in BIK incentives at the end of 2018, as well as the arrival of the more affordable Model 3, which has reached sales of over 6,000 units in the country.
As explained by the economist, Norway is a key market for Tesla in the European region, and it is responsible for 37% of the drop in Model S and X sales. For the first six months of 2019, Model S and X sales were 2,079 units, while the Audi e-tron sold 2,273 units and the Jaguar I-PACE sold 2,101. Bernstein’s note claimed that the market for premium electric vehicles didn’t increase, and thus, Tesla’s share of the European market just fell. This, according to the investor, is not correct. “If you take the previous Netherlands sales out of the equation — because it becomes incomparable — you’ll see that the market actually increased in Europe,” he wrote.

The actual reasons
The economist noted that there are a couple of factors that likely played a notable part in the decline of the Model S and X’s sales in Norway. First off, Tesla discontinued the 75 kWh (Standard Range) Model S and X, a variant that accounted for more than 80% of the sales in the country. More importantly, Tesla has entered the Norwegian market with the Model 3, a smaller, more affordable vehicle that boasts the best technologies that the electric car maker has to offer. “Norwegians have proven preferences for smaller and cheaper vehicles. Historically, the share of luxury vehicles in Norway is relatively low. It is then by no surprise that the Model 3 is currently selling at levels not seen in any other market, holding 14% of market share for total vehicles,” the economist explained.
In Norway’s case, at least, Tesla appears to have made a notable trade-off. It entered the market with the Model 3, which allowed the company to command 14% of the country’s total vehicle market. This came at a price in the form of a 50% decline in Model S and X sales. Of course, the removal of the Model S and X’s 75 kWh variant, as well as buyer expectations of an impending refresh of the two flagship vehicles, likely played a notable part in Norway’s sales decline as well.
Debunking Bernstein’s thesis
With these factors in mind, it appears that Bernstein’s findings are, for lack of a better term, inaccurate. The economist summed up his thesis as follows. “Two countries explain the drop in sales for the Model S and X almost entirely, and it’s absolutely clear that competition wasn’t the factor. Regulation and consumer preferences are. It is also important to mention that 28% of sales of the Audi e-tron were in Germany as well, a country where the Model S and X have never been strong, even at their peak.
“Consumers in the aggregate always behave rationally. There hasn’t been one example in history where a product(s) that is inferior in every way dominates the market or segment in which they compete. The Audi e-tron, the Jaguar I-PACE, and the Mercedes-Benz EQC are not even in the Model S and X segment specs-wise. Rather, they are closer in specs to the Model 3 and Model Y, both of which undercut them in price. The only reason people mistakenly put them against the Model S and X is their cost,” the investor explained.
Elon Musk
Tesla analyst says Musk stock buy should send this signal to investors
“With Musk’s (Tesla stock) purchase, combined with the upward momentum for delivery expectations and robotaxi rollout, we are becoming more bullish.”

Tesla CEO Elon Musk purchased roughly $1 billion in Tesla shares on Friday, and analysts are now breaking down the move as the stock is headed upward.
One of them is William Blair analyst Jed Dorsheimer, who said in a new note to investors on Monday that Musk’s move should send a signal of confidence to stock buyers, especially considering the company’s numerous catalysts that currently exist.
Elon Musk just bought $1 billion in Tesla stock, his biggest purchase ever
Dorsheimer said in the note:
“With Musk’s (Tesla stock) purchase, combined with the upward momentum for delivery expectations and robotaxi rollout, we are becoming more bullish. This purchase is Musk’s first buy since 2020. To us, this sends a strong signal of confidence in the most important part of Tesla’s future business, robotaxi.”
Musk putting an additional $1 billion back into the company in the form of more stock ownership is obviously a huge vote of confidence.
He knows more than anyone about the progress Tesla has made and is making on the Robotaxi platform, as well as the company’s ongoing efforts to solve vehicle autonomy. If he’s buying stock, it is more than likely a good sign.
Tesla has continued to expand its Robotaxi platform in a number of ways. The project has gotten bigger in terms of service area, vehicle fleet, and testing population. Tesla has also recently received a permit to test in Nevada, unlocking the potential to expand into a brand-new state for the company.
In the note, Dorsheimer also touched on Musk’s recent pay package, revealing that William Blair recently met with Tesla’s Board of Directors, who gave the firm some more color on the situation:
“We recently participated in a meeting with Tesla’s board of directors to discuss the details of Musk’s performance package. The board is confident of its position in the Delaware case and anticipates a verdict by end of year. It does not expect a similar situation to occur under new Texas jurisdiction. Musk has the board’s full support, and we expect he’ll get more than enough shareholder support for this to pass with flying colors.”
Tesla stock is up over 6 percent so far today, trading at $421.50 at the time of publication.
Elon Musk
Elon Musk just bought $1 billion in Tesla stock, his biggest purchase ever
Prior to this latest move, Musk’s most recent purchase was for about 200,000 shares worth $10 million in 2020.

Tesla (NASDAQ:TSLA) shares rose on Monday after CEO Elon Musk disclosed a rare insider purchase of company stock worth about $1 billion.
A filing with the U.S. Securities and Exchange Commission (SEC) revealed that Musk acquired 2.57 million shares last Friday at various prices. The move represents Musk’s largest TSLA purchase ever by value, as per Verity data.
Elon Musk’s TSLA purchase
The disclosure sent Tesla shares up more than 8% in premarket trading Monday, as investors read the purchase as a notable vote of confidence, as stated in a CNBC report. Tesla stock had closed slightly lower Friday but remains more than 25% higher over the past three months. It should be noted that prior to this latest move, Musk’s most recent purchase was for about 200,000 shares worth $10 million in 2020.
Market watchers say the purchase could help shore up investor sentiment amid a volatile year for TSLA stock. Shares have faced pressure from a variety of factors, from year-over-year sales challenges due to the new Model Y changeover, political controversies tied to Musk, and reduced U.S. incentives for EVs under the Trump administration. Nevertheless, analysts such as Wedbush’s Dan Ives stated that Musk’s purchase was a “huge sign of confidence for Tesla bulls and shows Musk is doubling down on his Tesla A.I. bet.”
Tesla and Elon Musk
Musk already owns about 13% of Tesla, and his latest purchase comes as the company prepares for a key shareholder vote in November. Investors will decide whether to approve a compensation package for Musk that could ultimately be worth as much as $975 billion if ambitious market value milestones are achieved. The package has a long-term target of pushing Tesla’s market capitalization to $8.5 trillion, compared with about $1.3 trillion at Friday’s close.
Wall Street’s current consensus price target still implies a roughly 20% decline from current levels, though some Tesla bulls remain optimistic that the company could shift its focus toward autonomy, AI, and robotics. Musk has also asked shareholders to approve an investment into his latest venture, xAI.
Investor's Corner
Tesla bear turns bullish for two reasons as stock continues boost
“I think from a trading perspective, it looks very interesting,” Nathan said, citing numerous signs of strength, such as holding its 200-day moving average and holding against its resistance level.

A Tesla bear is changing his tune, turning bullish for two reasons as the company’s stock has continued to get a boost over the past month.
Dan Nathan, a notorious skeptic of Tesla shares, said he is changing his tune, at least in the short term, on the company’s stock because of “technicals and sentiment,” believing the company is on track for a strong Q3, but also an investment story that will slowly veer away from its automotive business.
“I think from a trading perspective, it looks very interesting,” Nathan said, citing numerous signs of strength, such as holding its 200-day moving average and holding against its resistance level.
He also said he believes a rally for the stock could continue as it heads into the end of the quarter, especially as the $7,500 electric vehicle tax credit is coming to an end at the end of the month.
With that being said, he believes the consensus for Q3 deliveries is “probably low,” as he believes Wall Street is likely underestimating what Tesla will bring to the table on October 1 or 2 when it reports numbers for the quarter.
Tesla bear Dan Nathan has flipped his script on Tesla $TSLA shares, citing “technicals and sentiment”
— TESLARATI (@Teslarati) September 12, 2025
Tesla shares are already up over five percent today, with gains exceeding nine percent over the past five trading days, and more than fourteen percent in the past month.
While some analysts are looking at the performance of other Mag 7 stocks, movement on rates from the Federal Reserve, and other broader market factors as reasoning for Tesla’s strong performance, it appears some movement could be related to the company’s recent developments instead.
Over the past week, Tesla has made some strides in its Robotaxi program, including a new license to test the platform in the State of Nevada, which we reported on.
Tesla lands regulatory green light for Robotaxi testing in new state
Additionally, the company is riding the tails of the end of the EV tax credit, as inventory, both new and used, is running extremely low, generally speaking. Many markets do not have any vehicles to purchase as of right now, making delivery by September 30 extremely difficult.
However, there has been some adjustments to the guidelines by the IRS, which can be read here:
Tesla is trading at around $389 at 10:56 a.m. on the East Coast.
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