Tesla’s sales slump in Europe continues into eighth month
Tesla’s sales decline in several European markets continued in August amid intense competition from electric vehicle rivals and growing consumer concerns over CEO Elon Musk. Norway and Spain were the only exceptions to the trend.
Data from France showed that Tesla registrations fell 47.3% in August compared to the same month in 2024, while the overall car market grew 2.2%. In Sweden, Tesla sales plunged 84%, even as electric vehicle sales remained flat and total car sales rose 6%. Denmark saw a 42% drop, and the Netherlands experienced a 50% decline in Tesla registrations, News.Az reports, citing Reuters.
Norway, where Tesla has a strong presence and nearly all new car sales are electric, recorded a 21.3% rise in Tesla registrations. However, rival BYD saw registrations spike 218% in the same period. In Spain, Tesla sales rose 161% to 1,435 vehicles, but BYD’s sales increased more than 400% to 1,827 cars. Year-to-date, BYD’s sales in Spain have surged 675% to 14,181 units, while Tesla’s sales grew only 11.6% to 9,303 vehicles.
Tesla faces several challenges in Europe. The company has a small, ageing lineup and has not released a new mass-market model since the Model Y in 2020, while new Chinese competitors and traditional automakers flood the market with fresh models. Analyst Matthias Schmidt noted that Tesla’s disappointing volumes are partly due to the increasingly competitive market environment.
Consumer backlash against Elon Musk has also affected sales. His political involvement, including support for U.S. President Donald Trump and European far-right parties, has alienated some buyers. Ginny Buckley, CEO of Electrifying.com, reported that over half of those surveyed said Musk is putting them off purchasing a Tesla, signaling that the brand’s dominance is no longer guaranteed.
The decline has been compounded by the growing secondhand market. Tesla’s dramatic price cuts on new cars have reduced the value of used Teslas, which are now being snapped up quickly. In the United Kingdom, sales of used Teslas jumped 270% in July, while the average price for a used Model Y fell 41% compared to July 2023.
Earlier this year, Tesla representatives argued that the sales decline in Europe was temporary, linked to production shifts toward the revamped Model Y, Europe’s top-selling car in 2023. Deliveries of the updated Model Y began in June, yet registrations still fell sharply in Denmark and Sweden by 46.5% and 87%, respectively.
As Europe’s electric vehicle market grows more competitive, Tesla faces the dual challenge of expanding its lineup and restoring consumer confidence affected by its CEO’s polarizing influence.
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