Tesla Sales in Europe Plunge 45%, Rival EV Makers Gain Ground in Key Markets

Due to a spike in demand for electric vehicles from rival automakers, Tesla’s sales fell 45% in Europe last month.

On Tuesday, the European Automobile Manufacturers Association reported that Tesla registered 9,945 vehicles in January, compared to 18,161 cars the previous year.

Last month, Tesla registered 1,277 new cars in Germany, the fewest consecutive months since July 2021. Sales fell 63% in France, the lowest level since August 2022.

Tesla registered fewer cars in the UK for the first time than BYD, a Chinese company. In the EV market, which expanded 42% last month, Tesla’s sales dropped by almost 8%.

Tesla is currently retooling the production line for its bestselling Model Y SUV.

Due to its intense efforts to boost sales in the latter part of last year, Tesla is probably facing inventory shortages in some markets. The Model Y assembly line change may also have affected January registrations.

During last month’s quarterly earnings call, Chief Financial Officer Vivhav Taneja warned that manufacturers would lose several weeks of production if they switched to a new design for a model first released in 2020.

Tesla manufactures the Model Y at four facilities worldwide, one outside of Berlin.

Elon Musk, the CEO, also deals with a more divisive role in world politics.

According to a mid-January YouGov survey in Germany and the UK, Musk was seen unfavorably, and his political involvement was undesirable.

Musk became a significant donor to President Donald Trump during the US election campaign last year. Since then, he has targeted Europe, attacking incumbent lawmakers and endorsing far-right parties.

Musk has joined Trump in demeaning Ukrainian President Volodymyr Zelenskyy and disputing polls that indicate the president is in favor of the Ukrainian people, in addition to applying pressure on leaders in Germany and the UK.

Zelenskyy said last week that the US president was a victim of Russian disinformation in response to Trump’s criticism.

Shares of Tesla are down 7.78%. This year, the stock has dropped 23%.