According to a report by TechRadar, Tesla is facing a growing crisis as its sales in the European market take a nosedive. Market research firm JATO Dynamics reveals that Tesla’s sales plummeted 45% last month, resulting in its lowest market share in five years.
The electric vehicle (EV) maker sold fewer than 16,000 units in key European markets, including the UK, Norway, and Switzerland. This stark decline contrasts sharply with the overall 25% increase in European electric vehicle registrations during the same period. Competitors like BYD and Polestar saw 94% and 84% sales surges, respectively.
Felipe Muñoz, a global analyst at JATO Dynamics, attributes the sales slump partly to Tesla’s model changeover timing. However, he also points to Elon Musk’s political activities as a negative factor. Ahmad Assiri, a strategist at Pepperstone Research, echoes this sentiment, stating that Musk’s political involvement is turning off both consumers and investors. In contrast, Assiri highlighted the growing appeal of Chinese brands like BYD in the market.
While Tesla has improved quality and performance with its new Model 3 and Model Y, the pricing strategy may be backfiring. The Model Y Juniper Launch Edition’s price tag of £60,990 (around $81,726) in the UK has left many consumers waiting for more affordable options. This hesitation and Tesla’s erratic pricing policies could further exacerbate the sales decline. Industry analysts warn that if sales continue to lag until the Model Y lineup is completed in the latter half of this year, Tesla may face an even more severe crisis.
