Despite nearly halving sales in Europe, Tesla "goes against the trend" to acquire assets of a bankrupt German parts supplier
Despite a significant decline in European sales in January, which caused the stock price to drop more than 10% on Tuesday, reports indicate that Tesla has still decided to acquire some assets of the German auto parts supplier Manz, which is undergoing bankruptcy proceedings, taking over Manz's factory and equipment located in Reutlingen, Germany, as well as more than 300 employees
Despite nearly halving its sales in Europe in January, Tesla still chose to acquire some assets of the German auto parts supplier Manz, which is undergoing bankruptcy proceedings.
On Tuesday Eastern Time, the Financial Times reported that under the terms of the deal, Tesla's automation division will take over Manz's factory and equipment located in Reutlingen, Germany, along with more than 300 employees. Manz entered bankruptcy proceedings due to the sharp deterioration of the European battery market. The parties did not disclose the transaction amount.
This acquisition by Tesla comes at a time when its sales in the European market have significantly declined. According to data from the European Automobile Manufacturers Association, Tesla sold only 9,900 vehicles in Europe last month, a year-on-year decrease of over 45%. In specific markets, Tesla's sales in France dropped by 63%, while registrations in Norway also decreased by 38%. Even in the UK, Tesla's registrations fell by 8% compared to the same period last year. In Germany, where Tesla's only production base is located, new car registrations also decreased by 59.5% in January.
Industry analysts believe that the decline in Tesla's sales is due to multiple factors. On one hand, Tesla's CEO Elon Musk has recently made frequent statements in EU politics, openly supporting the far-right party Alternative for Germany (AfD), which has sparked widespread political controversy. AfD co-leader Alice Weidel revealed on Monday that Musk personally congratulated her party on its electoral performance. This political involvement is believed to potentially have a negative impact on the brand image.
In addition to political factors, analysts point out that consumer hesitation is also a significant reason for the decline in sales. With the upcoming release of the new Model Y in the first half of 2025, many consumers are choosing to temporarily postpone their car purchases. Furthermore, Tesla's year-on-year sales comparison is also challenging, as last January's sales surged due to the Model 3 facelift. Analyst Matthias Schmidt stated, "Nevertheless, the sales in January are still disappointing, which may indicate that some consumers are turning to other brands."