Tesla sales drop sharply in Europe as political backlash persists

By
EDGARDO HERNAL
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NEW YORK. Tesla’s sales in Europe have plummeted for the seventh consecutive month, with buyers continuing to shun the brand amid growing anger at CEO Elon Musk, according to new industry data released Thursday.

Sales of Tesla vehicles in the 27 European Union countries fell 40 percent in July compared with the same month last year, even as overall electric vehicle sales surged by 39 percent, figures from the European Automobile Manufacturers’ Association showed. The company sold 6,600 cars last month, down from 11,465 in July 2023.

By contrast, Chinese automaker BYD expanded its presence, reaching a 1.1 percent market share of all EU car sales in July, while Tesla’s share slipped to 0.7 percent.

Tesla’s stock price fell 1.5 percent in afternoon trading following the report.

Musk has faced mounting criticism in Europe after publicly supporting far-right candidates, calling a former British prime minister an “evil tyrant” and urging Germans to back the anti-immigrant Alternative für Germany party. The remarks sparked protests in several cities, including an effigy of Musk being hanged in Milan and posters in London comparing him to a Nazi.

The company’s struggles also reflect regulatory and operational challenges. Tesla is still awaiting EU approval for its Full Self-Driving software, which Musk had predicted would be authorized by March. Production was further disrupted earlier this year when the company temporarily shut down factories to retool for a new version of its Model Y sport utility vehicle.

For the first seven months of 2024, Tesla sales in the EU have fallen 44 percent, with the company’s overall market share at 1.2 percent of all vehicle sales compared with 0.9 percent for BYD.

Tesla is banking on the launch of cheaper models in the final quarter of the year to regain momentum.

Author profile

Edgardo Hernal started college at UP Diliman and received his BA in Economics from San Sebastian College, Manila, and Masters in Information Systems Management from Keller Graduate School of Management of DeVry University in Oak Brook, IL. He has 25 years of copy editing and management experience at Thomson West, a subsidiary of Thomson Reuters.

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