Tesla registrations in several key European markets plunged in November from a year earlier as the US EV maker continued to struggle to stem market share losses despite rolling out new versions of its best-selling Model Y.
Elon Musk’s brand however sold more cars in Norway and Italy than in November last year, partly offsetting losses elsewhere.
Monthly registrations, a proxy for sales, slumped by 58 per cent in France to 1,593 vehicles sold, by 59 per cent to 1,466 cars in Sweden, by 49 per cent to 534 cars in Denmark, by 44 per cent in the Netherlands to 1,627, by 47 per cent in Portugal to 425, and by 9 per cent in Spain to 1,523, official data showed.
However in Norway, they almost trebled to 6,215 cars, beating the country’s annual sales record with one month to spare. Registrations in Italy jumped by 58 per cent to 1,281, but remain down 28 per cent year-to-date.
Tesla’s overall market share in Europe dipped to 1.6 per cent in January-October from 2.4 per cent a year earlier, highlighting a downward trend for the brand whose signature Model Y SUV was Europe’s and the world’s best-selling model as recently as 2023.
The company’s slowdown in Europe began late last year after its CEO Musk publicly praised right-wing political figures, setting off protests across the region.
In November, a large fire at a Tesla dealership in Southern France prompted investigators to launch a criminal probe, local media reported.
Musk has toned down political commentary since stepping down from the US Department of Government Efficiency, but Tesla’s European business has not recovered.
TESLA NOVELTY FADES AMID GROWING COMPETITION
Analysts pointed to growing competition in a crowded European market, especially from new entrants from China, and Tesla’s aging lineup.
Consumer sentiment has weakened. Data analytics and advisory firm Escalent said in a study seen by Reuters that 38 per cent of respondents to a survey in Europe’s five largest car markets feel the brand’s novelty has worn off, and it trails competitors on design, quality and emotional appeal.
Many European buyers are also increasingly choosing hybrid cars over fully electric models, French car body PFA said.
November sales at Chinese EV maker BYD, which unlike Tesla also sells hybrids and plug-in hybrids, spiked to 3,526 vehicles in Italy, jumped 268 per cent to 2,934 in Spain and 65 per cent to 570 in the Netherlands, their best month on record in the country.
Musk spent much of this year focused on Tesla’s robotics pursuits and winning shareholder approval for his $1 trillion pay package, but his brand also tried to win back buyers by launching a refreshed Model Y earlier this year.
Only a handful of cheaper Model Ys, priced at 40,000 euros ($46,468) in Germany, had reached European markets at the end of November, however.
Sales of the Model Y dropped by 67 per cent in Sweden, 62 per cent in the Netherlands, 55 per cent in Portugal, 44 per cent in Italy and 74 per cent in Denmark. They jumped 19 per cent to 3,648 cars in Norway.
