Summary
Tesla’s European sales are plummeting, with Germany seeing a 60% drop despite strong EV growth. Similar declines hit Norway, Sweden, and France.
While some blame the Osborne effect—buyers delaying purchases for a refreshed Model Y—Musk’s endorsement of Germany’s far-right AfD may also be repelling customers.
Online backlash has linked Tesla to fascist imagery. In contrast, UK sales fell only 7.8%, suggesting political factors play a role.
With strong domestic EV competition in Europe, Tesla’s reputation crisis could further hurt demand.
The market can stay irrational longer than you can stay solvent…or sth like that.
“In the short term, the market is a voting machine, but in the long term, it is a weighing machine” - Benjamin Graham (“father” of value investing and mentor to Warren Buffett)
Meaning that in the short term, stock prices can be swayed from a company’s true value by investors’ emotions and opinions.
But eventually the stock price will align with the company’s actual profitability and growth potential.
And you’re right that these are crazy times, and the “short term” irrationality can last a lot longer than past experiences.
Historically, we’ve used examples like the 17th century tulip mania, or the dot com boom, but it won’t surprise me if Tesla becomes the poster child for this quote in the future.