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Tesla Faces Sliding Sales in Europe Amid Political and Market Challenges




Tesla’s Sales Decline in Europe


Tesla’s sales in Europe fell 13% in 2024, marking a significant drop in the automaker’s third-largest market. According to data from the European Automobile Manufacturers’ Association (ACEA), the decline outpaces the general 27% decrease in Europe’s battery-electric vehicle (BEV) market. Notably, Tesla’s sales in Germany, the heart of Europe’s automotive industry, plunged by 41%, a sharper drop than the broader EV market.


Challenges in a Crowded Market


The fall in sales comes as Europe’s EV market becomes more competitive. Domestic rivals like Renault and BMW, along with Chinese automakers, are launching cheaper and more appealing models. Volvo, owned by China’s Geely, saw a 30% rise in EU sales last year, driven by its €36,000 EX30 electric crossover.


Tesla has not launched a new vehicle in Europe since the Model Y in 2021. Analysts point to the company’s aging lineup as a major disadvantage in the face of growing competition. “It’s looking a little bit samey,” said Philip Nothard of Cox Automotive.


The recently unveiled revamped Model Y is seen as Tesla’s chance to regain ground. Deliveries of the updated SUV are expected to begin later this year.


Political Controversies Surround Musk


Elon Musk’s political interventions are drawing criticism in Europe and potentially impacting Tesla’s reputation. Musk’s endorsement of Germany’s right-wing AfD party led to a backlash, with German Chancellor Olaf Scholz calling his support “completely unacceptable.”


In Germany, some companies have announced they will stop buying Tesla vehicles due to Musk’s comments. Activists have also targeted Tesla’s Berlin gigafactory with protests. Meanwhile, Musk’s political moves have extended to the UK, where he has feuded with Prime Minister Keir Starmer and reportedly considered supporting the right-wing Reform party.


Rivals Seize the Opportunity


Competitors are taking advantage of the negative sentiment surrounding Musk’s politics. Polestar, a Swedish EV brand, has instructed its sales teams to target Tesla owners disillusioned by Musk’s actions. Michael Lohscheller, Polestar’s CEO, emphasized that the company is listening closely to customer feedback, with many expressing dissatisfaction with Musk’s political involvement.


Broader Implications


Experts suggest that while Musk’s political controversies may alienate some customers, other factors such as price, performance, and product lineup remain crucial. “Ultimately, it’s a car — do they like it, is it affordable, and does it meet their needs?” Nothard noted.


Tesla’s first annual drop in European sales underscores the challenges it faces in a shrinking EV market. The automaker’s ability to adapt to new products and manage its public image will be key to reversing its fortunes.


Tesla declined to comment on the situation.



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