European electric vehicle demand is booming, but Tesla has lost favor, with January sales in Europe nearly halved
Tesla is busy with the transformation of the Model Y production line, affecting deliveries. At the same time, Musk's controversial political stance, supporting the far-right and belittling Zelensky, may have damaged Tesla's brand image in Europe, leading to its decline in popularity
As the European electric vehicle market is booming, Tesla unexpectedly encounters a downturn.
Data from the European Automobile Manufacturers Association shows that Tesla's vehicle registrations in January were only 9,945, a staggering 45% drop from 18,161 units in the same period last year, nearly halving.
Among them, new car sales in Germany in January were 1,277 units, the lowest since July 2021; sales in France plummeted by 63%, marking the worst performance since August 2022.
However, during the same month, electric vehicle sales in Europe surged by 37%, with rapid growth in Germany and the UK.
The European region has always been an important market for Tesla.
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 the decline in Tesla's sales is due to on one hand, its busy transformation of the Model Y SUV production line, affecting deliveries.
On the other hand, Musk's political stance has sparked controversy; after supporting Trump in the last U.S. election, he has also supported far-right parties in Europe, criticized the current government, and belittled Zelensky alongside Trump, questioning his approval ratings, which has somewhat damaged Tesla's brand image in Europe.
As of yesterday's close, Tesla fell by 2.15% to $330.53 per share.
