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For Elon Musk and Tesla, already contending with a persistent sales-related malaise, the planned transition away from a glorified EV manufacturer to a full-fledged AI and robotics company could not come any sooner. After all, such a transition would not only entail juicier valuation premiums, but also paper over the supposed brand damage that Elon Musk's seemingly brief flirtation with active politics has wrought.
Last month, when asked about Tesla's falling sales in Europe at the Qatar Economic Forum, Elon Musk issued a feint in the following words:
"That’s true of all manufacturers. There’s no exceptions."
He then went on to assert:
"The European car market is quite weak."
Yet, the underlying data continues to counter Musk's assertions. For instance, European EV sales volume rose 28 percent in April, constituting a new record for the month. However, Tesla's sales across the EU declined by 49 percent in the same timeframe.
This unflattering trend seems to have continued in May as well. As an illustration, BEV sales in the UK rose by 28 percent in May. However, Tesla's sales in the UK crashed by 45 percent year-over-year to 1,758 units.
Germany reported 1,210 Tesla sales and 0.5% market share in May. BEV penetration is 18% and Tesla has 2.8% of this segment. 🇩🇪
• -36% vs. May last year
• Last three months -34.6% vs. December - February
• Year-to-date -58% over same period last year
• Year-to-date is 19% or… pic.twitter.com/3j1OEyAjue— Roland Pircher (@piloly) June 4, 2025
In Germany, where Elon Musk precipitated a particularly strong backlash against Tesla by openly supporting the far-right AfD party in the recent elections, the EV giant reported sales of 1,210 units in May, constituting a 36 percent year-over-year plunge. Again, the overall German BEV market grew by 44.9 percent year-over-year in the same timeframe.
What's more, this less-than-flattering trend is expected to persist in the near-term. After all, Wall Street analysts now expect Tesla's sales to decline by 7 percent and 5 percent year-over-year in Q2'25 and FY 25, respectively.
It is for this reason that Elon Musk is trying to change the narrative around Tesla, one that would ideally establish it as primarily an AI and robotics company, with EV manufacturing relegated to an afterthought.
To this end, Tesla is expected to debut its unsupervised FSD on the Model Y in Austin, Texas, next week, concurrent with the launch of between 10 and 20 robotaxis. By the end of 2025, the EV giant intends to roll out this service to a number of US cities.
Meanwhile, Morgan Stanley's Adam Jonas, in line with his proclivity of incorporating imaginary business lines within Tesla's valuation computation, has again stated that Tesla could become a major drone and eVTOL player by 2050.
While conceding that Tesla has not announced any aspirational plans to manufacture drones, Jonas asserts that the EV giant has a "host of relevant skills to be a factor in the Low Altitude Economy from both a commercial and (potentially) non-commercial perspective."
Jonas believes a single eVTOL could generate the same revenue as that amassed by up to 15 ride-sharing vehicles. Accordingly, the Morgan Stanley analyst sees a valuation upside that ranges between $100 per share and $1,000 per share for Tesla.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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