

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.
Investor's Corner
Tesla Board member and Airbnb co-founder loads up on TSLA ahead of robotaxi launch
Tesla CEO Elon Musk gave a nod of appreciation for the Tesla Board member’s purchase.

Tesla Board member and Airbnb Co-Founder Joe Gebbia has loaded up on TSLA stock (NASDAQ:TSLA). The Board member’s purchase comes just over a month before Tesla is expected to launch an initial robotaxi service in Austin, Texas.
Tesla CEO Elon Musk gave a nod of appreciation for the Tesla Board member in a post on social media.
The TSLA Purchase
As could be seen in a Form 4 submitted to the United States Securities and Exchange Commission (SEC) on Monday, Gebbia purchased about $1.02 million worth of TSLA stock. This was comprised of 4,000 TSLA shares at an average price of $256.308 per share.
Interestingly enough, Gebbia’s purchase represents the first time an insider has purchased TSLA stock in about five years. CEO Elon Musk, in response to a post on social media platform X about the Tesla Board member’s TSLA purchase, gave a nod of appreciation for Gebbia. “Joe rocks,” Musk wrote in his post on X.
Gebbia has served on Tesla’s Board as an independent director since 2022, and he is also a known friend of Elon Musk. He even joined the Trump Administration’s Department of Government Efficiency (DOGE) to help the government optimize its processes.

Just a Few Weeks Before Robotaxi
The timing of Gebbia’s TSLA stock purchase is quite interesting as the company is expected to launch a dedicated roboatxi service this June in Austin. A recent report from Insider, citing sources reportedly familiar with the matter, claimed that Tesla currently has 300 test operators driving robotaxis around Austin city streets. The publication’s sources also noted that Tesla has an internal deadline of June 1 for the robotaxi service’s rollout, but even a launch near the end of the month would be impressive.
During the Q1 2025 earnings call, Elon Musk explained that the robotaxi service that would be launched in June will feature autonomous rides in Model Y units. He also noted that the robotaxi service would see an expansion to other cities by the end of 2025. “The Teslas that will be fully autonomous in June in Austin are probably Model Ys. So, that is currently on track to be able to do paid rides fully autonomously in Austin in June and then to be in many other cities in the US by the end of this year,” Musk stated.
Investor's Corner
Tesla hints at ‘Model 2’ & next-gen EV designs
Tesla’s Q1 2025 update confirms new models this year, with production tied to existing factory lines. Could it be time for the Model 2 debut?

During its Q1 2025 earnings call, Tesla executives hinted at the much-rumored “Model 2” and other next-gen EV designs.
Tesla slightly addressed whether or not it will be pushing forward with the debut of new models later this year in its latest earnings call. The company’s product development executive, Lars Moravy, shared some details about Tesla’s design process and the upcoming affordable models.
“We’re still planning to release models this year. As with all launches, we’re working through, like, the last minute issues that pop up. We’re knocking them down one by one. At this point, I would say that the ramp might be a little slower than we had hoped initially…But there’s nothing that’s blocking us from starting production within the next, within the timeline laid out in the opening remarks.
“And I will say it’s important to emphasize that, as we’ve said all along, the full utilization of our factories is the primary goal for these new products. And so the flexibility of what we can do within the form factor and, you know, the design of it is really limited to what we can do on our existing lines rather than building new ones. But we’ve been targeting the low cost of ownership. Monthly payment is the biggest differentiator for our vehicles, and that’s why we’re focused on bringing these new models with the, you know, the lowest price, to the market, within the constraints I just highlighted.”
The Model 3 is a hell of a deal, ngl. With the federal tax credit, it'd be silly to get a comparably priced combustion-powered car.
Now for the big question. Is the Model 3 currently the best-looking Tesla? https://t.co/5E37J9OKhU— TESLARATI (@Teslarati) April 24, 2025
In January, Tesla’s Chief Financial Officer Vaibhav Taneja teased several new product introductions for this year. There is at least one product that most Tesla supporters and investors are hoping to see: the company’s affordable vehicles, which have been dubbed by the EV community as the “Model 2” or “Model Q.”
Before Tesla’s Robotaxi event last year, many speculated that the company would also unveil its affordable next-gen vehicle. Gene Munster from Deepwater had expected Tesla to release a stripped-down version of the Model 3 as its affordable vehicle during the Robotaxi event. In the end, Tesla unveiled its Robotaxi vehicle and its Robovan design.
It’s been a while since the Robotaxi event, and Tesla has kept mum about its affordable vehicle. Considering its Q1 2025 performance, TSLA investors look forward to catalysts that could boost the stock.
The “Model 2” has been labeled a potential catalyst for Tesla. As such, TSLA investors and supporters have been itching for news about the new affordable vehicle. The main questions surrounding the “Model 2” revolve around its design and price. Based on Moravy’s statement, the “Model 2’s” design will heavily depend on Tesla’s current assembly lines and supply chain structures.
Elon Musk
Tesla regains Piper Sandler’s confidence with Robotaxi plans & Q1 Results
Piper Sandler says Tesla delivered the best-case scenario for bulls. $TSLA has catalysts ahead to silence the bears.

Tesla gained Piper Sandler analyst Alexander Potter’s confidence following its Q1 2025 earnings call. Piper Sandler reaffirmed its Overweight rating and $400 TSLA price target, signaling optimism for the company’s robotaxi and affordable vehicle launches expected this year. The firm’s stance reflects Tesla’s resilience amid market challenges.
Despite expectations of weak Q1 financials, Tesla’s stock edged up in after-hours trading, defying skepticism. Piper Sandler’s Alexander Potter noted that the results met the hopes of Tesla supporters, particularly as the company held firm on its timelines. Potter emphasized that anticipation for robotaxi details and new vehicle launches should keep critics at bay, supporting the $400 target.
“In our preview last week, we predicted that (at best) Q1 would be a non-event. With the stock trading up slightly in the after-hours session, it appears our best-case scenario has materialized. Considering generally weak Q1 financials, we think this is the best result that TSLA bulls could’ve reasonably hoped for.
“In our view, the most important Q1 takeaway is this: Tesla didn’t hedge expectations re: launching Robotaxis or lower-priced vehicles in 1H25. With <2 months until the end of June, investors can look forward to some interesting catalysts in the weeks ahead. In our view, this alone should be enough to keep the bears at bay, at least until we have a better idea re: the details of Tesla’s new products, as well as the scale/scope of the Robotaxi launch,” wrote Potter.
Wedbush Securities’ Dan Ives, a longtime TSLA bull, echoed Potter’s optimism for Tesla. Ives raised his price target for Tesla stock from $315 to $350 with a BUY rating. His Tesla upgrade came after Elon Musk’s announcement during the Q1 earnings call that he would reduce his involvement with DOGE, signaling a sharper focus on Tesla.
Tesla’s steady Q1 performance and unwavering commitment to its 2025 roadmap, including the Robotaxi launch and lower-priced models, bolster investor confidence. Piper Sandler’s analysis underscores Tesla’s ability to navigate a competitive electric vehicle market while advancing its technological edge. The upcoming Robotaxi launch and affordable vehicle introductions are pivotal, with analysts expecting these initiatives to drive stock value through 2025.
As Tesla prepares for these milestones, its stock movement reflects market trust in Musk’s vision. With Piper Sandler and Wedbush reaffirming bullish outlooks, Tesla’s strategic moves will remain under close scrutiny, positioning the company to capitalize on its innovation pipeline in a dynamic industry landscape.
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