Tesla (TSLA) shares are in focus today after data from the European Automobile Manufacturers’ Association (ACEA) confirmed the EV maker’s regional sales declined an alarming 49% in April.

Tesla’s billionaire chief executive has already announced plans of stepping back from politics, but the ACEA data suggests the related reputational damage continues to pressure its sales momentum. 

Still, Tesla stock price is up more than 60% versus its year-to-date low at the time of writing. 

Demand Slowdown Could Weigh on Tesla Stock

ACEA’s data this morning is particularly significant for Tesla investors as overall sales of electric vehicles were up more than 34% in Europe last month. 

What that signals may be that rising competition is making it incrementally more difficult for TSLA to sell even as adoption at large continues to grow. 

In fact, the company is no longer the best-selling EV brand in Europe. It has recently lost that long-held title to BYD (BYDDY) – as Barchart reported here. 

Investors should also note that Tesla’s quarterly automotive revenue came in down 20% for Q1, further substantiating the narrative that it’s indeed struggling with a demand slowdown in 2025.  

Put together, the aforementioned data warrants caution in buying Tesla stock at current levels.   

UBS Warns of Potential Downside in TSLA Shares to $190

TSLA shares may be unattractive to own for the back half of this year also because a recent UBS survey indicates “declining interest in EVs and the Tesla brand around the world.”

On Tuesday, the investment reiterated its “Sell” rating on the EV stock. UBS has a $190 price target on Tesla that translates to potential downside of more than 45% from here.  

On top of reputational damage, rising competition, and the related demand slowdown, UBS remain bearish on Tesla stock because  tariffs could hurt the company’s energy business as well. 

Wall Street Sees Tesla as Overvalued in 2025

While not as bearish as UBS, other Wall Street firms also currently see Tesla shares as overvalued. 

According to Barchart, the consensus rating on TSLA currently sits at “Hold” only with the mean target of about $288 indicating potential downside of nearly 20% from current levels.