Tesla’s sales in key European markets have taken a hit for the fifth consecutive month, with significant declines seen in the UK, Germany, and Italy. The electric car manufacturer is facing increased pressure from political backlash associated with CEO Elon Musk, as well as stiffer competition from traditional automakers and more affordable Chinese EV brands.
In May, Tesla only managed to sell 1,210 vehicles in Germany, marking a decrease of over 36% compared to the previous year. This decline comes despite a 45% increase in overall electric vehicle sales in the country. Chinese competitor BYD, on the other hand, experienced a staggering ninefold increase in sales in Germany during the same period, reaching 1,857 units.
The UK also witnessed a sharp decline in Tesla sales, plummeting by more than 45% year-over-year. This drop pushed Tesla down to fifth place in UK EV sales, trailing behind Volkswagen, BMW, Audi, and Skoda. In contrast, the overall EV market in the UK grew by 28%.
Italy saw a 20% decrease in Tesla sales in May, while the country’s broader EV market surged by over 40%. A spokesperson for Tesla UK attributed the decline to limited inventory, stating that the company had sold off its older Model Y stock and is now awaiting deliveries of the refreshed version from its Berlin factory. The updated Model Y, previously Europe’s top-selling car, is anticipated to drive sales up in June once it becomes available in more markets.
On the bright side, Norway, where deliveries of the new Model Y have already commenced, is experiencing an early sales boost. This positive development offers hope for Tesla amidst mounting competition and internal challenges.
Overall, Tesla’s performance in key European markets highlights the evolving landscape of the electric vehicle industry. With increasing competition and shifting consumer preferences, the company will need to adapt and innovate to maintain its market position and regain momentum in the region.