European car market sees a general rise, while Tesla declines: Musk's remarks contradicted by data
Tesla CEO Elon Musk has made a significant misjudgment about the European automotive market, claiming that the sales decline is consistent across all manufacturers. However, the latest data shows that Tesla's sales have dropped by 39.7% year-on-year, making it the worst performer among major brands. Despite the increased production capacity of the new Model Y, it has failed to reverse the downturn, with a significant loss of market share. Musk attributes the poor sales to the weak European economy, but data shows that new car registrations in the EU have increased by 13.7% year-on-year
According to the Zhitong Finance APP, Tesla (TSLA.US) CEO Elon Musk has made a significant misjudgment about the European automotive market. In an interview at the Qatar Economic Forum, he claimed that Tesla's sales decline in Europe is consistent with the situation of all automakers, but the latest sales data presents a completely opposite picture.
Data from automotive research firm Jato Dynamics shows that while the European new car market has shrunk by about 3 million units compared to pre-pandemic levels in the first four months of this year, the market structure has undergone a structural change. Among the top five automakers by sales volume, Volkswagen, Toyota (TM.US), Stellantis NV (STLA.US), and others have all achieved year-on-year growth, while Tesla has seen a 39.7% decline, placing it at the bottom among mainstream brands. This performance sharply contrasts with Musk's assertion that "all manufacturers' sales are declining."
Senior analyst Felipe Munoz pointed out: "Tesla is experiencing significant market share loss, becoming one of the biggest losers in the European car market." Although the ramp-up in production of the new Model Y was expected to boost sales, this redesigned SUV has failed to reverse the downturn as anticipated. Munoz analyzed that: "The current supply of Model Y in the European market should meet demand, but the actual conversion rate is far below expectations."
Musk attributed the poor sales to "weak European economy," but data from the German Automotive Industry Association shows that new car registrations in the EU increased by 13.7% year-on-year in April. This divergence between macro data and micro performance exposes Tesla's dual challenges of product competitiveness and channel layout in the European market
