The COVID-19 pandemic has hit stock markets around the world. Indexes fell by more than 20%, and in particular, car manufacturers were hit hard. Tesla’s stock price, rising to a record high of $ 917.42 on February 19, has since fallen 61%.
The logic of investors taking money from the automotive industry is simple. In the current environment, consumers are unlikely to fork out for new cars. In addition, the demand for vehicles is automatically reduced when travel restrictions come into force.
In the case of Tesla, sales in China first dipped when the coronavirus began to spread there, but now it seems that it is not just a coronavirus. Sales of Tesla Model 3 in Germany in annual terms fell by 36%. And this despite the fact that the entire market for battery electric vehicles grew by 149% over the year.
At the same time, 2019 was so good for Tesla in Europe that the company decided to build its fourth gigafactory near Berlin.
We add that in the Netherlands, Model 3 sales decreased by 71.40% over the year, although the market as a whole grew by 49.98%, in Norway sales of Model 3 decreased by 93.30%, in the market grew by 19.80%, in Spain’s Model 3 sales decreased by 44.50%, although the market grew by 127.86%.
The source explains the increase in sales of electric vehicles by the fact that in January the emission limit came into force.