Tesla Sales Plummet in Europe, Up to 90% Down; China Market Also Struggles

Electric vehicle giant Tesla is encountering significant market challenges across Europe and in China, signaling a tough period despite a brief uptick in some areas during September.

Recent data reveals a sharp downturn in new Tesla registrations, a key indicator of sales, with alarming drops in several European nations. October figures saw registrations plummet by 89% in Sweden, 86% in Denmark, and 50% in Norway. Spain also experienced a substantial 31% decline. This stark performance contrasts sharply with the broader European EV and plug-in hybrid market, which saw a robust 119% surge during the same period, underscoring Tesla’s unique struggle. Cumulatively, Tesla’s overall sales on the continent were down 28.5% through September compared to the first nine months of the previous year.

Amidst these widespread declines, France emerged as a rare positive, reporting a modest increase in Tesla sales for the second consecutive month.

Stateside, Tesla’s trajectory has also been inconsistent. A 13.5% dip in second-quarter sales saw its US EV market share fall below 40% for the first time ever in August. While the third quarter experienced a temporary surge driven by consumers rushing to capitalize on expiring federal tax credits, analysts widely anticipate a renewed slump in Q4 as these incentives conclude.

Industry observers point to several factors contributing to Tesla’s global sales woes. A primary concern is its relatively limited and aging vehicle lineup, especially when compared to the rapid innovation and new model releases from burgeoning Chinese electric vehicle manufacturers. The fierce competition from a new generation of sophisticated and often more affordable EVs is undeniably impacting Tesla’s market position.

Furthermore, the ‘Musk effect’ cannot be overlooked. Elon Musk’s often polarizing public statements and associations are increasingly cited as a deterrent for potential buyers, particularly within the European market and a segment of American consumers, who may be seeking brands with less controversial public figures at the helm.

Compounding its European difficulties, Tesla is also navigating a challenging landscape in China, a crucial global EV market. Following a modest 2.8% increase in September, October saw a 9.9% decline in its Chinese sales figures, indicating persistent headwinds in this highly competitive arena.

As Tesla prepares for its annual meeting on November 6th, all eyes will be on shareholders as they deliberate Elon Musk’s controversial $1 trillion pay package. The company’s board chairman, Robyn Denholm, has urged approval, citing the risk of losing its visionary CEO if the deal doesn’t proceed, a scenario that adds another layer of complexity to Tesla’s current market struggles and future trajectory.