Tesla posts weak sales in Europe amid tough competition
Tesla’s European sales slumped just over 40 percent in February as the electric car maker grappled with tough competition and growing ire towards Elon Musk’s political activities. Tesla’s battery-electric vehicles in the U.K., EU, and European Free Trade Association. fell 40.1% year over year to 16,888 units last month.
The percentage has decreased by 42.6 percent so far this year.
Additionally, the European Automobile Manufacturers’ Association reported on Tuesday that the company’s market share in the region dipped to 1.8 percent from 2.8 percent a year ago.
Tesla’s poor February sales coincided with a 26.1% year-over-year increase in battery electric vehicle (EV) registrations in Europe, while competitors like China’s SAIC saw robust growth in the same month.
Battery electric vehicles (EVs) comprised the third-largest portion of European automobile sales during January-February, holding a 15.2% market share. Hybrid EVs maintained dominance with a 35.2% market share, while petrol cars accounted for 28.6%.
Tesla’s sales decline occurred amid a softer European car market, where overall new vehicle registrations dropped by 2.6% year-over-year for the month. However, major manufacturers like Volkswagen, Renault, and BMW recorded stronger sales.
Tesla faces several challenges in the European market, including an aging lineup compared to newer and cheaper Chinese competitors. The company is preparing to launch an updated version of its best-selling Model Y mid-size SUV, with a Reuters report indicating that the firm might reduce the new model’s price by 20% to help boost lagging sales.
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