There are few companies in the US stock market that have had as volatile a 2025 as Tesla (TSLA). The EV manufacturer has suffered from a brand crisis that saw its reach and market share overseas plummet. Now, despite things turning around, Tesla sales in Europe have hit a 3-year low, with worries abounding that it could keep the stock from the $350 level.

The company has seen its overall prevalence in Europe decrease due to the political affiliations and reach of CEO Elon Musk. Subsequently, that has led Tesla sales in France to fall 67%, according to a Bloomberg report. The question is, can it derail what has been a notable comeback for the stock in Q2?

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Tesla Sales Falls to 3-Year Low in Europe as June Turnaround Is Threatened

The US stock market has struggled yet again, with the official arrival of the summer bringing even more volatility. Indeed, the Nasdaq and S&P 500 both dropped Monday amid increased tensions between the US and China. The talks had many fearful that tariffs could return.

That sets an interesting backdrop for the performance of another key stock. One of the biggest underperformers of the Magnificent 7 could take another major hit. Specifically, Tesla (TSLA) has seen its Europe sales fall 67% in France to a 3-year low as the stock struggles to reach the psychologically vital $350 mark.

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The company sold just 700 units in May, even with recent changes to its Model Y being present. However, the development is one that hasn’t concerned Elon Musk. Indeed, he recently rebuked sentiments that there is a “demand problem.” Moreover, he noted that “everyone is struggling in Europe; there’s no exception.”

On the first trading day of the month, Tesla dropped 2.58% at the midday park. Additionally, that continued a 5.48% drop that has persisted over the last five days. Still, shares are up more than 17% over the last month and trading at $336. Its median target sits at just $307, leaving room for a potential 8% downside risk.