Tesla Inc. (NASDAQ: TSLA) saw its European sales plummet nearly 49% in April, highlighting deepening struggles for the electric vehicle giant in a region beset by rising competition and a boycott linked to CEO Elon Musk.
According to data released by the European Automobile Manufacturers’ Association (ACEA) on Tuesday, Tesla’s new car registrations across the European Union, the European Free Trade Association, and the UK fell to 7,261 units, compared to 14,228 units a year earlier.
Tesla’s European market share also dropped to 0.7% from 1.3%, even as overall battery electric vehicle (BEV) sales expanded 34.1% year-on-year to 145,341 new registrations. Meanwhile, total European car registrations dipped slightly to 1.07 million units.
Aging Lineup Faces New Rivals and Tariffs
Tesla’s dip in sales is closely tied to increased competition from both European automakers launching their own EVs and a surge in Chinese EV exports, despite rising import tariffs. Notably, Chinese EV giant BYD (SZ:002594) overtook Tesla in European sales for the first time in April.
Key contributing factors include:
- Tesla’s aging lineup, notably the Model Y, struggling to maintain momentum.
- European automakers stepping up with new EV offerings.
- Chinese EV makers like BYD gaining ground despite regulatory barriers.
Tesla has hinted at refreshing its key models to counter these pressures, but demand for EVs appears to be moderating, with cost-conscious buyers shifting toward hybrids.
Boycott and Market Shifts Weigh on Tesla’s Future
The persistent sales decline also underscores a boycott centered on CEO Elon Musk’s political affiliations, which continues to dampen consumer sentiment in Europe. This backlash has sparked protests, vandalism, and even arson targeting Tesla facilities in both Europe and the U.S.
While Musk has emphasized that Tesla’s sales are recovering in other regions, the company’s challenges aren’t limited to Europe. In China, the world’s top EV market, Tesla faces stiff competition and an ongoing price war, squeezing margins and testing its long-term growth strategy.
In summary:
- Tesla’s European sales fell 49% in April, far outpacing the modest dip in total car registrations.
- EV sales rose 34% year-on-year, but Tesla lost share to both European and Chinese rivals.
- A Musk-led boycott shows little sign of abating, further complicating Tesla’s recovery in Europe.
