Why Tesla's European sales fell for the 8th consecutive month
What's the story
Tesla's sales slump in Europe has continued for the eighth consecutive month, according to data from France. The company saw a massive 47.3% drop in car registrations last month compared to August 2024. This comes even as the overall car market in France grew by nearly 2.2%. The decline is attributed to stiff competition from electric vehicle (EV) rivals and a backlash against CEO Elon Musk.
Regional impact
Sales decline across the board in Europe
The sales slump isn't limited to France alone. In Sweden, Tesla registrations plummeted by over 84%, while in Denmark they fell by a whopping 42%. Even the Netherlands saw a 50% drop in Tesla registrations last month. The company's performance has been better in Norway and Spain, but still lags behind China's top electric carmaker BYD.
Market competition
BYD is now Tesla's biggest rival
In Norway, a country where Tesla has a strong presence and nearly all new cars sold are electric, registrations for the US EV maker rose by 21.3%. However, rival BYD saw an enormous spike of 218% in registrations. In Spain, despite providing EV subsidies of up to €7,000, Tesla's sales rose by 161% to 1,435 cars from last year's 549 units. Meanwhile BYD's sales skyrocketed over 400% to reach an impressive total of 1,827 cars sold during the same period.
Political influence
Musk's political affiliations hurting Tesla
Musk's political affiliations, including helping bankroll Donald Trump's US presidential election victory last year and support for far-right parties in Europe, have also contributed to a consumer backlash against Tesla. Ginny Buckley, CEO of Electrifying.com, said over half of those surveyed by her organization were put off buying a Tesla because of Musk's influence on the brand. SC Insights's Andy Leyland added that low prices for used Teslas in the secondhand market are also hurting new car sales.