Elon Musk is mired in a political storm, and Tesla's sales in Europe in April nearly halved
Tesla's sales in Europe in April 2024 were only 7,261 units, a year-on-year decline of 49%. This drop occurred against the backdrop of a 34.1% overall increase in electric vehicle sales in Europe. Tesla is facing reputational damage and intense competition, especially as Musk's political activities have sparked controversy, leading to a decline in sales. Despite the launch of the upgraded Model Y, the overall product line appears outdated, and no new models have been introduced. BYD has surpassed Tesla in electric vehicle sales in Europe for the first time, and consumer preference for hybrid vehicles is also on the rise
The Zhitong Finance APP noted that Tesla's (TSLA.US) sales in the European market continued to plummet in April, as the American electric vehicle manufacturer faces ongoing regional reputational damage and increasingly fierce competition.
According to data from the European Automobile Manufacturers Association (ACEA), Tesla sold only 7,261 vehicles in Europe in April, a sharp decline of 49% year-on-year. This drop occurred against the backdrop of a 34.1% year-on-year increase in overall sales of pure electric vehicles in Europe during the same period.
Since 2024, Tesla's brand value and reputation have been on a continuous decline, mainly attributed to CEO Elon Musk's provocative remarks and political activities. Earlier this year, before the parliamentary elections in Germany, Musk publicly supported the far-right Alternative for Germany (AfD) party. Tesla has also clashed with labor organizations in the Scandinavian region.
In the United States, Musk spent nearly $300 million to support President Trump's re-election and led efforts to push the Trump administration's plan to dismantle federal agencies. In response, protests erupted at Tesla stores across Europe. From January to April this year, Tesla's sales fell nearly 40% year-on-year.
Although Tesla launched an upgraded Model Y SUV this year, its overall product line still appears outdated, and it has yet to release new models aimed at the mass market. Meanwhile, Tesla is facing increasingly fierce competition from traditional automakers and Chinese rivals. Last week, data showed that automotive giant BYD surpassed Tesla in pure electric vehicle sales in Europe for the first time.
European consumers also show a preference for hybrid vehicles—these models are equipped with small batteries but still primarily rely on traditional fuel. ACEA data indicates that hybrid vehicles currently account for over 35% of total car sales in Europe, while Tesla's product line does not include any hybrid models, only selling pure electric vehicles.
Due to Musk spending a significant amount of time serving as an advisor to Trump and leading the so-called "Government Efficiency Department," investors have raised questions about his focus.
Musk stated in a recent Tesla earnings call that by the end of May, his time managing government agencies will be significantly reduced, but he still plans to spend "a day or two" each week handling government affairs. The tech billionaire recently added in a public speech that he will remain committed to leading Tesla for the next five years
