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Tesla Sales Decline by 40% in Europe as Consumer Anger Towards Elon Musk Persists
Tesla's sales in Europe fell by 40% in July due to ongoing consumer anger towards Elon Musk. Despite a rise in overall electric vehicle sales, Tesla's market share continues to decline amid political controversies and competition from rivals like BYD.
Elon Musk's prediction of a "major rebound" in Tesla sales has not materialised, as recent data indicates. In July, Tesla's sales in the 27 European Union countries dropped by 40% compared to the previous year. This decline occurred despite a significant rise in overall electric vehicle sales, according to the European Automobile Manufacturers Association.
Meanwhile, Chinese competitor BYD saw its market share increase to 1.1% of all car sales in July, surpassing Tesla's 0.7%. Consequently, Tesla's stock experienced a 1.5% decrease during Thursday afternoon trading. The company's challenges extend beyond sales figures.
Political Controversies Impacting Sales
Musk's involvement in European politics has upset many locals. His support for far-right candidates and criticism of a British prime minister as an "evil tyrant" have sparked protests. In Milan, demonstrators hung an effigy of Musk, while posters in London compared him to a Nazi.
These political controversies are not the only issues affecting Tesla's performance in Europe. The company is still waiting for regulatory approval to offer its advanced driver-assistance features, which are available in the US. Musk had anticipated this approval by March this year.
Production Challenges and Future Plans
Tesla also faced production setbacks after temporarily closing factories earlier this year. This was done to prepare for a new version of the Model Y SUV. The company hopes that introducing more affordable models later this year will help recover sales.
In July, Tesla sold 6,600 cars in the EU, down from 11,465 the previous year. This drop occurred even though battery electric vehicle sales surged by 39%. For the first seven months of the year, Tesla's sales fell by 44%.
Despite these challenges, Tesla remained the leader in the EV market for that period. It accounted for 1.1% of all types of vehicle sales — battery, hybrid, and gas-powered — compared to BYD's 0.9%.
With inputs from PTI
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