Why Europeans are not buying Tesla's electric cars
What's the story
Tesla's sales have taken a major hit across Europe, even as electric vehicles (EVs) are becoming increasingly popular among car buyers. The company's sales in April witnessed a major decline in a number of countries including the UK, Netherlands, Denmark, Portugal, as well as Sweden and France. The trend is similar to the US, where Tesla CEO Elon Musk's political affiliations have sparked controversy and protests.
Market analysis
UK market witnesses drastic drop
In the UK, one of the few European markets where Tesla had stronger sales in Q1, April witnessed a staggering 62% drop as per the Society of Motor Manufacturers and Traders (SMMT). This fall came even as overall EV sales rose by 8% in the same month. Other European countries also reported significant declines with Denmark witnessing a 67% dip, Netherlands a 74% fall and Portugal a 33% decrease.
Challenges
Musk's political affiliations and increased competition contribute to decline
The drop in Tesla's European sales isn't just due to Musk's controversial political affiliations. The growing competition from other automakers, especially Chinese rival BYD, is a major reason too. BYD is set to dethrone Tesla as the world's largest EV maker in 2025.
Sales forecast
Analysts predict further decline in Tesla's sales
Analysts expect Tesla's full-year sales to fall further given its recent sales declines and the backlash against Musk. Gordon Johnson of GLJ Research, one of the most pessimistic on Tesla stock, said, "The second quarter of 2025 is (again) shaping up to be a disaster of a quarter for Tesla, following the disaster that was the first quarter."