Tesla's European Sales Plunge 40% as Chinese Rival BYD Takes Lead
Decline marks seventh straight month of falling sales for the EV maker in the region amid growing competition and controversy.
Tesla's sales in Europe plummeted by approximately 40% in July compared to the same month last year, as the electric vehicle giant grappled with intensifying competition and backlash against its chief executive, Elon Musk. The drop marks the seventh consecutive month of declining sales for the company in the region.
Data from the European Automobile Manufacturers’ Association (ACEA) showed that Tesla sold around 6,600 cars in the European Union in July, a steep fall from the 11,465 units sold a year earlier. This decline occurred even as the overall market for battery-electric vehicles in the EU surged by 39%, highlighting a significant loss of market share for the American automaker.
Adding to the pressure, Chinese competitor BYD saw its European sales more than triple, allowing it to overtake Tesla in the region for the month. BYD captured a 1.2% market share of all car sales, surpassing Tesla’s 0.7%.
Analysts attribute Tesla's struggles to several factors. Widespread European anger over CEO Elon Musk's controversial political statements has reportedly deterred potential buyers. The company also faces challenges from the delayed regulatory approval of its 'Full-Self Driving' software in Europe, a key feature available to its U.S. customers. Temporary factory shutdowns for retooling new models have also impacted production and sales.
The slump is part of a broader trend of Chinese electric vehicle brands, often offering more affordable models, aggressively expanding into the European market. For the first seven months of the year, Tesla's sales have fallen by 44%. In response, Tesla is pinning its hopes on a sales recovery in the final quarter of the year with the planned introduction of cheaper models.