​​Elon Musk’s Tesla’s sales continue to plummet in key European markets as it faces competition from Chinese manufacturers

Billionaire Elon Musk’s Tesla’s sales in key European markets continued to plummet in March as registration data revealed a significant drop in numbers. The electric vehicle (EV) giant was once a dominant player in the region. It is now facing growing competition from Chinese manufacturers and flak over CEO Musk’s controversial political endorsements.

As per reports, new registrations in France fell to 3,175, a 36.8 per cent decline compared to last year. Norway recorded 2,211 registrations, which was down by 63.9 per cent, while Sweden’s 911 registrations marked a much lower decline of one per cent. The Netherlands and Denmark also saw steep declines of 61 per cent and 65.6 per cent, respectively.

Registrations fell in Q1

As per a Reuters report, quarterly data reflected a similar downturn with registrations falling 41.1 per cent in France, 55.3 per cent in Sweden, 12.5 per cent in Norway, 55.3 per cent in Denmark, and 49.7 per cent in the Netherlands.


The reports stated that Tesla’s market share in France dropped to 1.63 per cent in contrast to 2.55 per cent a year ago, as they lost ground to Chinese EV makers like BYD. However, Spain and Portugal saw slight rise in March with registrations at 34.3 per cent and 2.1 per cent, respectively. Italy also recorded a 51.3 per cent increase, however the quarterly figures still showed a 6.8 per cent decline.

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Political controversy and vandalism target Tesla

Reportedly, Elon Musk’s increasing alignment with far-right political figures—both in the United States and Europe—fueled protests and vandalism against Tesla. In recent weeks, Tesla dealerships in various cities like Rome, Berlin, and Stockholm were spray-painted. Moreover, in Rome, 17 Tesla vehicles were set on fire. Musk described this as an ‘act of terrorism’.

Environmentalists, as per the reports, have hit Tesla shops across Sweden, Germany, and other parts of Europe, pointing to Musk’s views as their main point of contention. At the same time, people are launching ‘Tesla Takedown’ rallies across the US and Europe, which is further hurting the brand.

Tough competition and old car models

Reportedly, Tesla’s sales slump also stemmed from its small and outdated car lineup. Meanwhile, other companies are rolling out newer and often cheaper electric rides. The recent update to Model Y did not do much to boost sales.

Ben Nelmes, from research outfit New AutoMotive, said that the electric vehicle manufacturer has not come up with cars that match others on price. Moreover, Musk’s jump into US politics is driving buyers away.

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Despite these hurdles, Tesla’s stock jumped to 6.8 per cent in New York trading on Tuesday. However, it is still down by 36 per cent this year—its worst three-month run since late 2022, the reports added.

FAQs

Q. Why are Europe's Tesla sales decreasing?
A. Criticism of CEO Elon Musk's political support, together with a limited model range and rising competition from Chinese electric car makers, all cause Tesla's registrations to fall.

Q. How have political controversies influenced Tesla?
A. Musk's support for far-right movements has resulted in protests, Tesla showroom vandalism, and waning consumer interest, especially in Europe.