Tesla’s Europe Sales Punge 49%

Source Credit : CNBC

Tesla experienced a significant decline in European sales during the month of April. This can be attributed to the ongoing regional reputational challenges faced by the American electric car company and increased competition in the market.

According to the European Automobile Manufacturers’ Association (ACEA), Tesla's car sales in Europe were 7,261 in April. This marked a 49% decrease from the previous year, while overall battery electric cars saw a 34.1% increase in sales during the same period.

In recent months, Tesla's reputation has suffered due to CEO Elon Musk's entanglement in the political sphere with U.S. President Donald Trump. This has resulted in demonstrations at Tesla dealerships throughout Europe in March.

Although the company introduced an improved version of its Model Y SUV this year, its collection of vehicles is still growing old. There has yet to be a new, affordable option revealed.

Simultaneously, Tesla faces increasing competition from conventional car manufacturers and formidable Chinese contenders. In recent news, a different report revealed that BYD, a major auto company, surpassed Tesla in sales of fully electric vehicles in the European market for the first time.

In Europe, there is a growing trend towards hybrid electric vehicles, which are equipped with a small battery but still primarily rely on traditional fuel. According to ACEA data, these vehicles make up more than 35% of the overall European car market.

Tesla does not have any hybrid electric cars on the market, only selling full battery-powered vehicles.

Musk's commitment to Tesla has been called into question by investors due to his involvement with Trump and position in the Department of Government Efficiency. He assured shareholders during the latest earnings call that his involvement with DOGE would decrease greatly come May's end, but he intends to allocate "one or two days per week" for government responsibilities.

In a recent public speech, the tech billionaire reiterated his commitment to guiding Tesla for the next five years.