How Tesla plans to reverse its sales decline in Europe
What's the story
Tesla has launched new "Standard" versions of its popular Model Y and Model 3 cars in Europe. The move comes as part of the company's strategy to reverse a decline in sales in the region. The new models are priced at just under €40,000 (roughly ₹41.3 lakh), making them about €5,000 (around ₹5 lakh) cheaper than the current "Premium" versions.
Sales decline
Tesla's sales in Europe have plummeted by over 30%
Tesla's sales in Europe have taken a major hit, with around 134,000 vehicles sold through August this year. This is a massive 33% drop from the same period last year. The decline has been attributed to a lack of affordable models, increasing competition from other electric vehicle (EV) manufacturers, and concerns over CEO Elon Musk's political views.
Market competition
BYD's success in the European EV market
Chinese automaker BYD is rapidly increasing its presence in the European EV market. The company sold nearly 96,000 vehicles in the region, a whopping 280% increase from last year. This further highlights the challenges Tesla is facing amid rising competition and its own sales slump.
Global performance
Tesla's global sales decline
Tesla's global sales have also taken a hit, with about 1.22 million cars sold in the first three quarters of this year. This is a 6% drop from the same period last year. The company's performance has been particularly affected in Europe, where it is facing stiff competition from automakers like BYD, and in China, where sales are also declining.