Capacity adjustments + Musk's remarks spark controversy, Tesla's sales in France hit a two-year low in April
Tesla's sales in France hit a two-year low in April, with only 863 new cars registered, a 59% drop in sales. Capacity adjustments and CEO Elon Musk's political remarks have caused fluctuations in market confidence, leading to a 37% decline in Tesla's overall sales in Europe. Although the board has denied rumors of a CEO change, Tesla's stock price has fallen by 30% year-to-date
According to Zhitong Finance APP, despite Tesla (TSLA.US) increasing the production of its most popular models, the company registered only 863 new cars in France last month, marking its worst monthly performance in over two years. The latest data from the French automotive industry association Plateforme Automobile shows that Tesla's sales plummeted by 59% in April. In the first four months of this year, Tesla's registrations in the EU's second-largest electric vehicle market fell by 44%.
The direct trigger for the collapse in sales points to capacity adjustments. In early March, Tesla completed the production line transformation at its global factories, including Berlin, and resumed deliveries of the new Model Y SUV to the European market. However, this prolonged capacity shutdown, lasting several weeks, directly led to a record low in global deliveries for the first quarter since 2022, with the European market being the hardest hit.
A deeper crisis signal comes from fluctuations in market confidence. Tesla CEO Elon Musk has recently become deeply involved in U.S. political affairs, and his support for protectionist trade policies and calls for NATO reform have raised concerns among European consumers. This political risk is translating into commercial impacts: Tesla's overall sales in Europe fell by 37% in the first quarter, a decline far exceeding the global drop of 13%.
It is noteworthy that Tesla's board is facing unprecedented pressure. According to reports this week, some board members have contacted headhunting firms to look for a new CEO. Although Chairman Robyn Denholm urgently refuted the claims, stating that "the reports are inaccurate," the capital market's reaction is honest—Tesla's stock price has fallen by 30% this year, closing down more than 3% on Wednesday, with a mere 0.74% weak rebound in pre-market trading further highlighting investors' lack of confidence
