August , Tesla’s sales in several European markets declined further due to the intense market competition and consumers’ dissatisfaction with Musk’s political stance, which continues.
Data released on Monday showed that the registration of Tesla cars in France last month dropped by 47.3% compared with the same period in 2024, while the overall car market in the country grew by nearly 2.2%. This is already the eighth consecutive month of decline this year. Similar to the situation in France, Tesla’s registrations in Sweden dropped by more than 84%, in Denmark by 42%, and in the Netherlands by 50%.
Although Tesla’s sales in Norway and Spain have increased, the growth is far lower than that of BYD, China’s largest electric vehicle manufacturer. Tesla has a solid foundation in Norway, with a 21.3% increase in registrations, but the registrations of its competitor BYD soared by 218%. In Spain, which offers a 7,000-euro subsidy for electric vehicles, Tesla’s sales reached 1,435 units, a 161% increase from 549 units in August last year. However, BYD’s sales increased by more than 400% to 1,827 units. So far this year, BYD’s sales in Spain have skyrocketed by 675%, while Tesla’s sales have increased by 11.6%.
Analysts believe that there are several factors contributing to Tesla’s challenges in Europe. First of all, the company has a relatively small and aging lineup. Since the launch of the Model Y in 2020, it has not released any new models for the market, while competitors and traditional car manufacturers are introducing new models to the region.
Matthias Schmidt, an analyst at Schmidt Automotive, a market consulting firm in the automotive industry, said, “Tesla’s disappointing sales can be partly attributed to the more competitive market environment.” He added that Musk insisted during Tesla’s second-quarter investor call in July that there was no problem with Tesla’s sales in the European market. At that time, Tesla’s market share in Western Europe had dropped from 2.5% in 2024 to 1.7% in the first half of this year, which sounded a bit delusional.
Secondly, Musk’s political stance has exacerbated Tesla’s difficulties – his support for far-right political parties in Europe has sparked strong opposition from many consumers.
Ginny Buckley, CEO of the electric vehicle information website Electrifying.com, said, “Obviously, Musk’s influence on the brand is becoming more and more polarizing.”
In the survey by Electrifying.com, more than half of the people said that Musk was making them postpone their purchase of a Tesla, indicating that Tesla’s dominant position is no longer a given.
Andy Leyland, co-founder of the supply chain research firm SC Insights, said that Tesla’s sales are also starting to impact the used car market. Tesla has significantly cut the prices of new cars since 2023, seriously damaging the value of used Teslas. Marketcheck, which collects used car data in the UK, said that the sales of used Teslas in July hit a record high, increasing by 270%. The average price of used Model Ys hit a new low, falling by 41% since July 2023.
