Tesla Inc.’s sales have declined for the 10th time in Europe in the last 12 months. There, Elon Musk’s politics and the shift in the most important product of the automaker was a major obstacle.
According to the European Association of Automobile Manufacturers, the company registered 16,888 new cars in February, down 40% from a year ago. Tesla’s sales plummeted 43% in the first two months of the year, swaying from a 31% increase in industry-wide EV registrations.
The figures show that Tesla dug deep holes for itself in the first week of March before the company began streaming its redesigned Model Y (its most popular vehicle). Automakers rely on refreshed models to drum up their business, even if their CEO Musk becomes a more polarizing figure as President Donald Trump’s top advisor.
Mask detractors have targeted early Tesla stores, charging stations and even customer vehicles in both the US and overseas. The billionaires’ vote count was a hit as they tried to influence the vote in the German federal election last month. Since then, he has called for the US to withdraw from NATO and halt payments for European defenses.
Overall new car sales in the region fell 3.1% in February as economic uncertainty has led consumers to hold back larger purchases. This decline was driven by a 24% reduction in gasoline-powered vehicle registration and a 28% reduction in vehicles using diesel engines.
European automakers are facing another tough year in the home market as the region’s biggest economy is focused on consumer trust. At the same time, the threat of US tariffs and fierce competition with Chinese automakers led by BYD Co. is increasing pressure.
The Tesla registration in March and the next few months will make investors more clear about how much of a mask politics plays in declining sales.
To move to the new model, production had to be suspended at factories around the world earlier this year, including those from companies outside of Berlin. These disruptions take weeks of company production, losing or postponing sales.
European manufacturers are looking to capitalize on Tesla’s decline by offering several inexpensive battery-powered models, including the Renault SA’s 25,000 euro ($26,990) R5 E-Tech and the Stellantis NV’s 23,300 euro Citroënë-C3 City car. The vehicle is also intended to compete with products from Chinese manufacturers that are being pushed into the region.
Craig Trudel, Bloomberg News
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