Wall Street Breakfast Podcast: Tesla Sales Tumble In Europe

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Tesla (TSLA) struggles in Europe as sales plunge 49% Y/Y in April. (00:22) Southwest Airlines’ (LUV) fees for checked bags kick in this week. (01:24) Trump Media (DJT) prepares $3 billion fundraising to spend on crypto – report. (02:41)

This is an abridged transcript.

Tesla’s (NASDAQ:TSLA) grip on the European electric vehicle market weakened sharply in April.

The U.S.-based company sold 7,261 vehicles in Europe last month, a staggering 49% drop compared to April 2024.

according to figures from the European Automobile Manufacturers’ Association (ACEA). The decline came in stark contrast to the broader EV sector, which grew 34.1% year-over-year in the same period.

This is part of a larger downward trend. Tesla’s European sales have plummeted nearly 40% during the first four months of 2025.

Musk’s growing political entanglements in the U.S., particularly his alignment with President Donald Trump and his role as head of the Department of Government Efficiency, have sparked backlash in Europe.

Competition is also heating up. Chinese manufacturer BYD recently surpassed Tesla in pure EV sales in Europe for the first time.

Shares of Tesla (NASDAQ:TSLA) are up 2.6% premarket.

We’re learning more about the end of Southwest Airlines (NYSE:LUV) “Two Bags Fly Free” policy.

Starting May 28, the airline will charge $35 for one checked bag and $45 for a second, according to an internal memo viewed by The Wall Street Journal. As of 5am EST the carrier’s website still says it “will share more details as we approach May 28, 2025.”

The new fees are similar to what other airlines charge for checked bags.

Customers at the highest loyalty status level can still check two bags for free, while those with the airline’s credit card or the next status level can check one bag for free. Southwest’s (NYSE:LUV) highest fare type also comes with two free checked bags.

Passengers who bought tickets before May 28 will still get two free checked bags, unless they change their flight after the fees kick in.

Southwest’s (NYSE:LUV) new basic-economy tickets, which are not refundable and don’t allow changes, will also go on sale for the first time. These tickets will replace “Wanna Get Away” fares as the airline’s cheapest option.

The new checked bag fees will bring incremental revenue, the airline’s CFO Tom Doxey said last week. “But there will also be cost savings that result from the fact that we will fly fewer bags.”

President Trump’s company behind the Truth Social app—Trump Media & Technology Group (NASDAQ:DJT)—is reportedly planning to raise up to $3 billion to invest in cryptocurrencies, The Financial Times reported on Monday, citing sources familiar with the matter.

The proposed capital raise would comprise $2 billion in new equity and $1 billion through a convertible bond offering; however, the terms, timing, and size of the capital raise could still change, the report said.

The company has rebuffed the Financial Times report, criticizing the media coverage but not providing a direct denial or further details.

What’s Trending on Seeking Alpha:

Trump says US Steel will remain under American control with Nippon deal

SA Asks: What are the best robotaxi stocks right now?

Trump’s $175B missile shield is said to face steep tech, budgetary challenges

Catalyst watch:

• The three-day Bitcoin 2025 Conference will feature talks by Vice President JD Vance, Strategy (MSTR) CEO Michael Saylor, and Robinhood Markets (HOOD) CEO Vlad Tenev.

• PENN Entertainment (PENN), Oklo (OKLO), and DraftKings (DKNG) are some of the notable companies due to present at the Craig-Hallum Institutional Investor Conference.

• Aya Gold & Silver (AYA:CA) (OTCQX:AYASF) will present at the Raymond James Silver Day.

Now let’s take a look at the markets ahead of the opening bell. Dow, S&P and Nasdaq futures are in the green. Crude oil is up 0.5% at $61/barrel. Bitcoin is up 0.2% at $109,000. Gold is down 1.5% at $3,296.

The FTSE 100 is up 1% and the DAX is up 0.8%.

The biggest movers for the day premarket: Informatica (NYSE:INFA) +10% – Shares rallied after reports that Salesforce is reviving acquisition talks with the software company. Salesforce (NYSE:CRM), led by Marc Benioff, had earlier explored a deal in 2024, but it failed to materialize.

On today’s economic calendar:

• 9:00 am FHFA House Price Index

• 10:00 am Consumer Confidence

• 10:30 am Dallas Fed Manufacturing Survey

• 8:00 pm New York Federal Reserve Bank President John Williams will participate in a moderated discussion panel before the Bank of Japan Institute for Monetary and Economic Studies Conference.