AsianFin -- Tesla Inc.'s sales decline deepened across major European markets in November, with the electric vehicle (EV) maker losing ground even as EV demand surged in the region. The company's struggles stem from an aging product lineup, CEO Elon Musk's political controversies, and intensifying competition from rivals including Chinese automakers.
Credit：Tesla
New Tesla registrations, a proxy for sales, in France plummeted 58% to below 1,600 units last month, according to the country's manufacturers association. The company also posted declines of 59% in Sweden, 49% in Denmark, 44% in the Netherlands, and 47% in Portugal. Tesla's overall European market share slipped to 1.6% in the January-October period from 2.4% a year earlier.
Norway provided the sole bright spot, with Tesla registrations surging 175% in November to 6,215 vehicles, beating the country's annual sales record with one month remaining. The spike was partly driven by uncertainty over future tax breaks for EVs in the Nordic nation, where electric vehicles dominate new-car purchases.
The declines mark a continued slide for Tesla, whose Model Y SUV ranked as Europe's best-selling vehicle as recently as 2023. The company has faced blowback over Musk's political activities, including his support for Germany's far-right AfD party and role in the Trump administration, while disputes with European regulators over Tesla's Full Self-Driving system have added pressure.
October saw the 10th straight month of declining Tesla sales in Europe, while the overall market share of EVs in the broader European region grew to 16.4%. Tesla’s vehicle registrations in Europe fell to just 6,964 units in October, a 48.5% drop compared to a year earlier,according to the European Automobile Manufacturers' Association (ACEA). Meanwhile, total EV registrations in the region, which includes the Britain and the European Free Trade Association, rose 32.9% in October, with overall registrations regardless of powertrain up 4.9%.
Aging Lineup Fails to Capture Market Growth
Tesla's struggles are particularly striking given the robust expansion of Europe's EV market. In France, the electric vehicle market share rose nine percentage points to 26% in November, yet Tesla's sales fell. Germany's battery-electric vehicle registrations jumped 39% in the 10 months through October, while Tesla's sales declined 50% during the same period.
The company launched a refreshed Model Y earlier this year, priced at 40,000 euros in Germany. However, only a handful of the cheaper models had reached European markets by late November. Model Y sales dropped 67% in Sweden, 62% in the Netherlands, and 74% in Denmark, though they rose 19% in Norway.
Chinese Rivals Gain Ground
Chinese automaker BYD capitalized on Tesla's weakness. BYD's November sales spiked to 3,526 vehicles in Italy, jumped 268% to 2,934 in Spain, and rose 65% in the Netherlands—record monthly figures for the company in those markets. Unlike Tesla, BYD also sells hybrids and plug-in hybrids.
Consumer sentiment data underscores Tesla's challenges. Research firm Escalent found that 38% of respondents in Europe's five largest car markets believe the brand's novelty has worn off, with Tesla trailing competitors on design, quality, and emotional appeal, according to Reuters.
Norway Remains Outlier
Norway's surge in Tesla sales contrasted sharply with broader European trends. The Nordic country, which took first deliveries of the Model S outside the US in 2013, has seen Tesla sales climb more than a third in the 11 months through November. Tesla is now the best-selling car brand in Norway, where new-vehicle purchases are overwhelmingly electric.
Italy also showed growth, with registrations jumping 58% to 1,281 vehicles, though sales remained down 28% year-to-date. These exceptions, however, have only partially offset Tesla's losses across the region's major economies.
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