Tesla (TSLA) shares lost as much as 3% on Tuesday following reports that its sales have started to crumble in the United Kingdom as well. 

According to the latest data, the automaker delivered a total of 512 electric vehicles in the U.K. last month, which translates to an alarming 62% decline on a year-over-year basis. 

Despite today’s pullback, TSLA stock is up more than 20% versus its recent low. 

Why Are Tesla’s Sales Crashing in the U.K.?

Weakness in the U.K. is particularly significant for Tesla since it was the only European market where its sales were up in Q1.

TSLA had a disastrous start to the new year, but its sales in the United Kingdom were actually up 6% in the first quarter. Part of the reason was that the luxury car tax didn’t apply to EVs worth £40,000 or more in the United Kingdom until April 1.  

But now that the said exemption is gone, Tesla is losing its mojo in the U.K. as well. Even the new Model Y and meaningful discounts on the older Model Y are failing to retain its sales momentum in the region in Q2. 

Goldman Sachs Warns of Downside in TSLA Shares

Tesla’s stock price is keeping well above its year-to-date low despite a global sales decline, mostly because the EV giant is scheduled to pilot its robotaxi operations in Austin next month. 

According to Goldman Sachs analysts, the company’s “ability to leverage its Full Self Driving (FSD) software in China will be important for the stock going forward.”

However, immense competition from Chinese rivals, together with escalating U.S.-China trade tensions, could hinder that ability in 2025, they told clients in a research note today. 

Goldman Sachs reiterated its “Neutral” rating on the EV stock this morning and left its price target unchanged at $235 that signals potential downside of more than 10% from here. 

Tesla Is No Longer the Street’s Favorite

Other Wall Street analysts are no longer bullish on Tesla stock either. 

The consensus rating on TSLA currently sits at “Hold” only with the mean target of about $283 indicating potential upside of only 3% from current levels.