Tesla's electric car sales in Europe continue to decline for the fifth consecutive month, even after the introduction of the new Y model and changes in its CEO's political engagement.
Tesla Sales in Europe
According to the European Automobile Manufacturers’ Association, Tesla delivered 13,863 battery-only cars in the UK and wider Europe in May, marking a 28% decrease compared to May of last year. Earlier this year, Tesla’s earnings and unit sales began to slip, attributed to an aging lineup and Elon Musk's high-profile political comments.
Company Reaction and Strategy Changes
In response to declining sales, Musk agreed to reduce his public engagements and focus on the company's day-to-day operations. However, despite the decrease in sales figures, overall registrations of new electric vehicles in Europe rose by 27.2% compared to last year.
Market Competition and Analyst Forecasts
Barclays analysts estimate Tesla’s global deliveries for the second quarter to be around 375,000 vehicles, a 16% decrease year-on-year. This falls short of the roughly 400,000 units that investors had anticipated, highlighting ongoing challenges for the car manufacturer. Additionally, Chinese manufacturer BYD has outsold Tesla in pure electric models in Europe for the first time.
The sales situation for Tesla in Europe illustrates the challenges faced by the company. Despite the hurdles and increasing competition in the market, Tesla continues to implement innovations and adapt to current conditions.
