Plummeting 60%! Tesla's European sales face a Waterloo
Analysis suggests that Tesla's recent setback may be due to intensified competition in the European electric vehicle market, high inflation pressures, and declining consumer confidence. At the same time, Elon Musk, as Tesla's CEO, has played a significant role in the unpopular Trump administration in Europe and has recently made statements on political issues in Germany, which may also affect the brand image
Tesla's European sales have encountered a Waterloo, and Musk cannot escape the blame.
According to the latest data from the German Association of the Automotive Industry (VDA), Tesla's new car registrations in Germany in January fell by 60% year-on-year, making it the manufacturer with the largest decline among those selling more than 1,000 vehicles per month in Germany.
Moreover, Tesla's sales decline is not limited to Germany. According to reports from the French Automobile Manufacturers Association (PFA) and the Society of Motor Manufacturers and Traders in the UK, Tesla's sales in France and the UK in January fell by 63% and 8% year-on-year, respectively—however, the overall electric vehicle market in the UK grew by 42% in January.
According to FactSet data, Germany is Tesla's third-largest market, accounting for 2.2% of its total revenue, while France is Tesla's seventh-largest market, accounting for 1.5%.
Analysts believe that Tesla's current Waterloo may be due to intensified competition in the European market, with traditional automakers increasing their investments in electric vehicles. Additionally, high inflation pressures in Europe and declining consumer confidence may also affect Tesla's sales.
It is worth noting that Musk, as Tesla's CEO, not only played an important role in the unpopular Trump administration in Europe but has also recently made statements on German political issues, publicly supporting the Alternative for Germany (AfD), which may also impact the brand's image.
As of yesterday's close, Tesla fell over 3.5% to $378 per share.
